Princeton trustees, 403(b) plan participants agree to settle
Charges against the school's retirement plan related to fees echoed similar cases brought against other universities
Attorneys representing members of the Princeton University 403(b) plan and attorneys for the plan’s trustees have reached a settlement in a class-action case charging that the trustees breached their fiduciary duty.
The settlement was disclosed in a letter from Lite DePalma Greenberg, the attorneys for the plaintiffs. to the federal court judge in New Jersey hearing the case.
The settlement follows the pattern of similar cases in which the 403(b) plans of other elite universities, including Yale, Johns Hopkins and Cornell, were sued over fees and investment options.
One lawsuit that went to trial, involving the University of Pennsylvania, was dismissed. And Northwestern University prevailed on appeal in a case that charged university representatives with failing to negotiate a better deal for the school’s 403(b) plan participants.
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