Evergy 401(k) Lawsuit Settlement: Pending Court Approval and Distribution of Funds
A settlement has been reached in a class action lawsuit filed by former Evergy employees against the utility company regarding the management of the company's 401(k) plan. The settlement agreement is pending court approval and the distribution of settlement funds will be reviewed. Evergy maintains that it acted appropriately and in the best interest of plan participants throughout the process.
The lawsuit, filed in January 2025 by Derick Doll and Catherine Fluegel, accused Evergy of mismanaging the retirement plan by not monitoring underperforming investments. Joseph Nagel later joined the lawsuit as a plaintiff, and it was granted class action status in October 2025. The lawsuit named Evergy Inc., the plan's administrative committee, former CEO Terry Bassham, current CEO David Campbell, and retirement plan consultants SageView Advisory Group as defendants.
The lawsuit focused on the American Century Fund Target Date Funds offered in Evergy's 401(k) plan, alleging that they underperformed compared to similar funds. The funds were not removed from the plan until January 2025, despite their declining market share and assets. The plaintiffs argued that the plan fell short of the federal ERISA regulations' "prudent person" standard in managing investments.
Target Date Funds are investment options that adjust the portfolio's risk level as the participant nears retirement age. Evergy's matching funds were automatically invested in American Century TDFs unless directed otherwise by employees. The lawsuit covers the period from 2019 until a judgment is rendered, and it includes former and current Evergy employees who invested in the American Century funds during that time.
In response to the lawsuit, SageView, on behalf of the defendants, disagreed with many points raised by the plaintiffs but did not provide detailed explanations for their actions. The court ruled in favor of the class action status, citing hundreds of affected individuals with similar complaints. The settlement agreement aims to resolve the legal costs and uncertainties associated with the ongoing litigation.
In conclusion, the settlement of the class action lawsuit between former Evergy employees and the utility company regarding the management of the 401(k) plan is pending court approval. The lawsuit alleged that Evergy failed to monitor underperforming investments, resulting in losses for plan participants. The settlement agreement will undergo court review to determine the distribution of settlement funds.