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Compliance February 11, 2011
RadioShack Settlement Deemed Fair
A federal judge in Texas gave final approval to a $2.4-million
settlement of a class-action suit against RadioShack for breaching its fiduciary duty.
Reported by Fred Schneyer
The suit accused RadioShack of using Putnam mutual funds in its 401(k) plan, even though they were overpriced and underperforming. U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas ruled that the settlement pact was fair and ordered it carried out.
In his approval order, Means awarded class Representatives Jeffrey Cormier and Robert Outlaw $10,000 each, and named plaintiffs, Alan Goldstein, Keith Reiders, and Robert Maxwell, $2,500 each. Means also awarded attorneys representing the class $800,000 in fees and $94,131 in costs and expenses.
The case had originally included allegations of a separate fiduciary breach over the inclusion of company stock shares after they were no longer prudent to include in a 401(k) plan, but Means dismissed those counts (see “RadioShack Fiduciary Breach Case Plaintiffs Seek Class Action Nod“).