Jack Henry & Associates Reaches $1.6M Settlement in ERISA Class Action 

Technology provider Jack Henry & Associates, Inc. and its 401(k) retirement committee have agreed to a $1.6 million settlement in a class action lawsuit alleging breaches of fiduciary duty under the Employee Retirement Income Security Act, according to a filing in the U.S. District Court for the Western District of Missouri. 

The case, brought by plan participants Guy LaCrosse and Jojemar Mendoza, alleged that the company allowed its 401(k) Retirement Savings Plan to pay excessive recordkeeping and administrative fees and that it offered and led participants to invest in an “imprudently retained fund: the Prudential Guaranteed Income Fund.” 

From 2017 to 2022, Jack Henry’s  retirement plan paid more than $2 million in record keeping and administrative fees,. an average of $78 per participant, according to the filing.  

LaCrosse filed the original complaint on October 9, 2023, and later amended it to include plaintiff Mendoza and the Prudential GIF claim. 

A December 2024 mediation did not produce a settlement, but the parties reached an agreement in principle in January 2025 for $1.6 million and non-monetary relief in the form of defendants’ agreement to issue requests for proposals concerning its recordkeeping and administrative fees. Final settlement terms were confirmed after a July 2025 settlement conference with Magistrate Judge Brian Gaddy. 

Approximately 8,278 plan participants are eligible for compensation as a result of the settlement. 

Dicello Levitt LLP and Johnson Becker, PLLC represented the plaintiffs. Jackson Lewis P.C. and Barrasso Usdin Kupperman Freeman & Sarver, L.L.C. represented the defendants.  

Jack Henry & Associates, Inc. 401(k) Retirement Savings Plan had 8,165 plan participants with more than $1.3 billion in assets, according to its most recent Form 5500 filing.