Millions of dollars will be distributed to eligible Americans as a result of a settlement reached LinkedIn, the popular professional social networking platform. The company has agreed to pay $6.75 million to resolve claims that it violated the Employee Retirement Income Security Act (ERISA) mismanaging its 401(k) retirement plan.
The lawsuit alleged that LinkedIn violated federal law not meeting the minimum standards set ERISA, which aims to protect individuals participating in retirement and health plans in the private industry. According to the plaintiffs, LinkedIn allowed participants to be charged unreasonable expenses and made poor investment choices, resulting in the loss of value in their savings.
To be eligible for the settlement, individuals must have participated in the LinkedIn Corp. 401(k) Profit Sharing Plan and Trust between August 14, 2014, and July 1, 2020. The settlement fund will be distributed proportionally based on the account information of class members, such as their end-of-year account balances.
Active account holders will receive their share of the settlement as a deposit into their individual investment accounts, without needing to take any action. Former participants, beneficiaries, and alternate payees will receive a check or a tax-qualified rollover and must file a claim November 10, 2023, to receive their portion of the settlement.
It is worth noting that LinkedIn did not admit guilt as part of the settlement. This is a common practice in high-profile business settlements. Instead, the company chose to resolve the ERISA class action lawsuit agreeing to the $6.75 million settlement.
LinkedIn’s settlement amount pales in comparison to other social media companies that have recently settled class action lawsuits. For example, Meta (formerly known as Facebook) agreed to a $725 million privacy settlement, and Instagram users in Illinois may be eligible to receive part of a $68 million privacy settlement.
In conclusion, eligible individuals who participated in LinkedIn’s 401(k) retirement plan have the opportunity to receive a share of the $6.75 million settlement. This case serves as a reminder that companies must adhere to the regulations set ERISA to protect the financial well-being of their employees.
Sources:
– Employee Retirement Income Security Act (ERISA)
– LinkedIn Corp. 401(k) Profit Sharing Plan and Trust
(Note: URLs have been omitted)
