Hess Agrees to $850,000 Settlement in ERISA Case

The Hess Corp. has agreed to pay $850,000 to settle a complaint alleging it failed to properly manage the investments in its employees’ retirement plan, according to court documents. 

The proposed settlement requires preliminary approval from the U.S. District Court for the Northern District of Texas, where the case was heard. According to a Monday court filing, the parties agreed to the settlement in October.  

The settlement seeks to resolve claims brought by Joshua Wagner, a former participant in the Hess Corp. Employees’ Savings Plan. Wagner filed the case in February 2024 on behalf of himself and other plan participants, asserting that the company and its investment committee breached their fiduciary duties under the Employee Retirement Income Security Act by retaining high-cost mutual funds instead of less expensive investment options. 

The complaint was amended in April 2024, alleging that the plan failed to adequately monitor and control the plan’s investment fees, expenses and costs, thereby allowing service providers to charge excessive fees. 

The settlement will cover more than 6,000 current and former participants. The settlement represents roughly 70% of the plaintiffs’ estimated total damages of $1.2 million, according to court filing. 

If approved, the $850,000 payment will be placed into a qualified settlement fund and distributed to participants based on their account balances. Current participants will receive automatic credits to their retirement accounts, while former participants will have the option to receive payment by check or roll over their share into another retirement account, such as an individual retirement account. Any deductions for administrative costs, attorneys’ fees or the class representative’s award will be subject to court approval. 

The plaintiffs’ lawyers, which consist of law firms Foulston Siefkin LLP and Figari & Davenport LLP, will seek attorneys’ fees of up to one-third of the total settlement, plus reimbursement of litigation expenses, the court documents state. Wagner may request up to $15,000 as a service award for representing the class. 

An independent fiduciary will review the settlement on behalf of the retirement plan before final approval. A fairness hearing will be scheduled following preliminary approval, during which class members can object to the terms or opt out of the agreement. 

If the court grants final approval, the settlement will resolve Wagner v. Hess Corp. et al. after more than two years of litigation. 

Groom Law Group and Munsch Hardt Kopf & Harr represented Hess.  

The Hess Corp. Employees’ Savings Plan had more than $1.1 billion in assets with 3,060 plan participants at the end of 2024, according to the most recent Form 5500 filing.  

Hess did not respond to a request for comment.