MIT ERISA Lawsuit Parties Announce Settlement

The plaintiffs and defendants in an excessive fee case against the Massachusetts Institute of Technology (MIT) have filed a joint motion to stay all trial dates, saying they have reached an agreement in principle to settle the case.

No settlement details were given. The motion says the plaintiffs anticipate needing 45 days to file a motion for preliminary approval of the settlement.

Just this week, the plaintiffs requested leave to file new evidence of MIT President Rafael Reif’s unique knowledge related to the case. Last week, U.S. District Judge Nathaniel M. Gorton of the U.S. District Court for the District of Massachusetts moved forward most claims in the Employee Retirement Income Security Act (ERISA) lawsuit, but granted summary judgment to the defendants for a claim alleging a prohibited transaction between MIT and Fidelity Investments.

Trial was to begin on the case September 16.

Attorneys recently pointed out there has actually been relatively little helpful legal insight published by the courts, due to the fact that many Employee Retirement Income Security Act (ERISA) cases end with settlements, while others are dismissed early on for pleading deficiencies.