ADP Reaches $48 Million Retirement Plan Settlement After 6-Year Fee Lawsuit
Updated
Updated · PLANADVISER · Aug 4
ADP Reaches $48 Million Retirement Plan Settlement After 6-Year Fee Lawsuit
2 articles · Updated · PLANADVISER · Aug 4
Summary
$48 million would resolve a retirement-plan fee case against ADP after plaintiffs filed an unopposed motion on July 31 for preliminary court approval.
The deal also requires nonmonetary changes: ADP's fiduciary committee must review at least three target-date fund options, and an independent fiduciary would be appointed if ADP seeks reimbursement for administrative services.
The 2020 lawsuit targeted the $4.4 billion ADP TotalSource Retirement Savings Plan, alleging excessive recordkeeping fees, imprudent investment choices and weak oversight of service providers for more than 114,000 participants.
The case survived most dismissal efforts in 2022, won class certification in February 2025 and reached an agreement in principle in June, positioning the settlement to end more than six years of litigation.