Lowe’s Settles Pension Lawsuit

Lowe's Cos has settled a lawsuit filed by a participant in its 401(k) plan who alleged the company and its administrative committee breached their fiduciary duties in the plan's offering of an investment option. The settlement provides for a $12.5 million settlement fund from which participant class members are entitled to distributions. The suit alleged that Lowe's, its administrative committee, and investment consultant Aon Hewitt Investment Consulting (now Aon Investments USA) had breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 by offering the fund. Aon was accused of a conflict of interest in recommending a proprietary fund for the plan, charging it improperly, and did so to further its own financial interests instead of the interests of the plan's participants, said the original lawsuit. No settlement has been reached with Aon.