Industry News

Cumulus to Pay $1 Million to Settle ERISA Suit

The publication Pensions & Investments reports that Cumulus Media Inc., is agreeing to pay $1 million to settle a lawsuit filed by seven former employees whose complaint alleged that the fee practices and investment selections of Cumulus Media’s 401(k) plan violated ERISA. The settlement document states, “Defendants specifically deny any such liability and wrongdoing and state that they are entering into this settlementCumulus Media - Logo agreement to eliminate the burden and expense of further litigation.” It also says, “The plaintiffs believe that all claims ‘have merit,’ but they decided to settle due to ‘the inherent risks, difficulties and delays in complex ERISA litigation such as this.’” The settlement requires court approval. The Pensions & Investments report says, “The plaintiffs sued in December 2022, alleging that the defendants ‘did not try to reduce the plan’s expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the plan to ensure it was prudent.’…The Cumulus Media 401(k) Plan, Atlanta, had $260 million in assets as of Dec. 31, 2021, according to the company’s most recent Form 5500 filing.” Read the full story here.