Boeing Co. agreed Wednesday to a preliminary deal to settle a long-running lawsuit accusing the company of mishandling its 401(k) plan to the detriment of its employees.

The terms of the settlement, which comes on the day a trial was scheduled to begin in the nine-year-old class-action suit, couldn't immediately be determined. The two sides are expected to update the court on details of the talks next month, according to a court order.

Filed on behalf of 190,00 Boeing employees and retirees, the suit accused Boeing of failing to uphold its fiduciary duties to employees by allowing excessive 401(k) fees to go unchecked, choosing higher-cost retail mutual funds over cheaper options, and improperly making 401(k) plan decisions to benefit vendors receiving other Boeing business.

Boeing, which has defended its 401(k) practices and denied the claims, had no comment Wednesday on the settlement. A representative for the plaintiffs had no immediate comment Wednesday.

U.S. District Judge Nancy Rosenstengel in East St. Louis, Ill., who was to preside over the case, had ordered the two sides to make one more effort at mediation before proceeding to trial.

The settlement is the ninth reached in a string of similar lawsuits brought against companies for alleged violations of the federal Employee Retirement Income Security Act by plaintiffs' lawyer Jerome Schlichter.

Earlier this year, Mr. Schlichter helped negotiate a $62 million settlement with Lockheed Martin Corp. and a $27.5 million deal with Ameriprise Financial Inc. Mr. Schlichter's law firm typically takes home 30% of the recoveries.

Boeing's $44 billion 401(k) plan is the second largest in the nation after International Business Machines Corp.'s, according to the Labor Department.

Write to Sara Randazzo at sara.randazzo@wsj.com

Access Investor Kit for "NIRI Demo Co"

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US4592001014

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

August 26, 2015 17:25 ET (21:25 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Ameriprise Financial Charts.
Ameriprise Financial (NYSE:AMP)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Ameriprise Financial Charts.