Dive Brief:
- A federal judge approved a $3 million settlement on Thursday involving Knight-Swift Transportation Holdings, helping to finalize a case over allegedly high 401(k) fees. Roughly 100,000 workers could receive money.
- The payout involves workers participating in Knight-Swift’s retirement plan from Oct. 26, 2016 to Nov. 26, 2025. Two named plaintiffs will each get $10,000.
- In a settlement agreement reached last October, Knight-Swift noted while it continued to reject the allegations, the company felt it was best to resolve the matter — with the deal restricting further claims from beneficiaries of the payout.
Dive Insight:
The settlement frees Knight-Swift from a case that’s burdened the company for years. Settlement negotiations alone began in January 2023 and ended in August 2025.
The financial hit comes as no surprise to the company, following the settlement agreement and preliminary approval from the court in November.
The case alleged the trucking company “breached certain fiduciary duties” with administrative fees and expenses in the retirement plan that were higher “than reasonable and necessary,” according to lawyers representing the workers.
Knight-Swift rejected the allegations, maintaining that it acted prudently and loyally to participants and beneficiaries of the plan, according to an informational website that’s part of the settlement terms.
The settlement agreement in no way represented fault, liability or wrongdoing, and the deal also did not mean plaintiffs’ claims were without merit, according to the filing.
