News | 12.05.18

BB&T Settles 401(k) Lawsuit for $24 Million

by: Greg Iacurci

BB&T Corp. has agreed to pay $24 million to resolve a lawsuit accusing it of loading employees’ 401(k) retirement plan with poorly performing mutual funds that the bank managed and collecting millions of dollars in excessive fees. The agreement, which requires court approval, settles a 2015 lawsuit accusing BB&T of violating the Employee Retirement Income Security Act by managing the 401(k) plan for its own self-interest instead of for the sole benefit of plan participants, as the law requires.