Kimberly-Clark Settles 401(k) Fee Lawsuit for $2.25 Million

Case Overview: Kimberly-Clark has reached a $2.25 million settlement in a class action lawsuit alleging excessive fees in its 401(k) retirement plan.

Consumers Affected: Participants and beneficiaries of the Kimberly-Clark 401(k) and profit-sharing plan.

Court: U.S. District Court for the Northern District of Texas, Dallas Division

Kimberly-Clark Corporation has agreed to a $2.25 million settlement in a lawsuit over alleged excessive fees within its 401(k) defined contribution pension plan. The case accused the company of failing to ensure cost-effective administrative services, resulting in unnecessary expenses for participants.

Kimberly-Clark Accused of Excessive Fees in 401(k) Plan

Filed in April 2021, the complaint alleged that Kimberly-Clark and its fiduciaries violated their obligations under the Employee Retirement Income Security Act (ERISA). The plaintiffs claimed the company allowed excessive administrative fees, failing to safeguard participants’ interests. ERISA requires plan administrators to monitor service providers and ensure all investments remain prudent.

The lawsuit further alleged that participants bore unnecessary financial burdens due to these failures. The plaintiffs sought compensation for the harm caused and measures to improve the plan’s administration.

$2.25 Million Settlement Reached in 401(k) Fee Lawsuit

According to court documents, the agreement was reached through mediation. Kimberly-Clark has not admitted wrongdoing but chose to settle to avoid the uncertainties and expenses of continued litigation.

The $2.25 million settlement, awaiting final court approval, will be distributed to participants and beneficiaries of the Kimberly-Clark 401(k) and profit-sharing plan between April 15, 2015, and the preliminary approval date. Eligible members include both current and former participants.

The settlement terms also include provisions to notify class members about their eligibility and distribution processes. Distributions will occur after the settlement receives final court approval and any appeals are resolved. A date for the final hearing has not yet been scheduled.

Other Lawsuits Raise Concerns Over Retirement Plan Management

Similar lawsuits have raised concerns about employers’ management of retirement plans. In May, Merrill Lynch faced allegations of violating ERISA by denying former financial advisors access to commissions tied to its WealthChoice Contingent Award Plan. Plaintiffs argued the company improperly restricted funds earned through their employment.

In July, CentraCare Health System, a healthcare network in Central Minnesota, resolved a class action lawsuit for $800,000. The claims centered on allegations that CentraCare failed to meet its fiduciary obligations under ERISA.

InjuryClaims.com will provide updates on the Kimberly-Clark ERISA settlement website's availability.

Case Details

• Lawsuit: Seidner et al. v. Kimberly-Clark Corporation et al.
• Case Number: 3:21-cv-00867
• Court: U.S. District Court for the Northern District of Texas, Dallas Division

Plaintiffs' Attorneys

•  Paul M. Secunda (Walcheske & Luzi, LLC)
• Joe Kendal (Kendall Law Group, PLLC)

Are you a participant in the Kimberly-Clark 401(k) plan? Share your thoughts on the settlement in the comments below.