Analysis

ABB Suit Shows Danger Of 'Scorched Earth' Approach

Law360 (September 4, 2019, 12:04 PM EDT) -- A 13-year court battle between ABB Inc. and its workers produced the first-ever trial in a suit challenging 401(k) plan fees, one of the largest settlements in these cases and a cautionary tale for employers about taking a “scorched earth” approach to fighting benefits litigation.

After three trips through the appeals courts and two petitions lodged with the U.S. Supreme Court, the case finally settled in March for $55 million — $18.1 million more than a Missouri federal judge ordered ABB to pay in 2012.

ABB also spent a substantial amount defending the case, doling out $42 million on attorney fees alone...

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