Branch Banking and Trust (BB&T), a bank holding company based in North Carolina with reported revenues over $11.6 billion dollars in 2018 settled a lawsuit over the excessive fees they charged to their employees over their 401K plans. The bank agreed to pay approximately $24 million to settle the case. The affected employees include those who worked from September 2009 to October 2018. The money will go towards compensating the current employees and retirees involved in the plan. The plaintiffs alleged the bank and the plan’s management company charged excessive fees for under-performing assets. In addition to the bank, managers, board members, subsidiaries, and the employee-benefits plan committee were named defendants in the case. The lawsuits were filed in 2015.
BB&T is one of the biggest banks in the United States. It’s current stock price is hovering around $49 per share. According to Marketwatch, analysts recommend buying the stock and that is a good sign from the market about the confidence it has in the bank. A Forbes article stated BB&T has over 36,000 employees. Many of those employees were probably affected by the company’s actions in regards to its 401K plan. In their suit, plaintiffs alleged the bank was looking out for its own interest instead of their employees.
401k plans are employer-sponsored programs designed to help their employees save for retirement. The plans are managed by an outside company that takes those funds and designs investment programs tailored toward each individual’s preference and tolerance of the market. Some people choose aggressive programs, moderate, or conservative investments for their plans. 401K plans are also called defined contribution plans because the employees contribute in part to their retirement. They differ from defined benefit plans which are commonly known as pension plans. They are wholly-contributed by the employer.
About RapidFunds
RapidFunds provides post-settlement funding to plaintiffs’ attorneys with fees in the settled cases against BB&T Corporation. The company also provides case cost funding to plaintiffs’ attorneys for their current and future case expenses. Interested plaintiffs’ attorneys can fill out an application on our website or complete the application here. For more information about post-settlement funding, case cost finance, and the funding process call 888-927-9500 or email info@rapidfunds.com.