Intuit $1.99 Million 401(k) ERISA Class Action Settlement

Employees who participated in the Intuit Inc. 401(k) plan and had plan expenses charged to their account between Jan. 1, 2018, and Dec. 31, 2021, may qualify to claim a cash payment from a $1.99 million class action settlement.

Intuit Inc. agreed to pay $1,995,000 to settle a class action lawsuit alleging it breached fiduciary duties, violated the Employee Retirement Income Security Act's anti-inurement provision and engaged in prohibited transactions by using forfeited, nonvested, employer-matching 401(k) contributions to offset future employer-matching contributions.

Who are the class members?

Class members are all participants and beneficiaries in the Intuit Inc. 401(k) plan who had plan expenses charged to their accounts at any time from Jan. 1, 2018, through Dec. 31, 2021.

This includes both current and former employees and beneficiaries of deceased participants.

How much can class members receive?

Pro rata payment: The total settlement fund is $1,995,000. The amount each class member receives will depend on the total plan recordkeeping fees Intuit deducted from their account during the class period relative to the total fees Intuit deducted from all class members’ accounts.

Here’s how the calculation works:

• The settlement administrator will calculate the total plan recordkeeping fees deducted from the class member's account between Jan. 1, 2018, and Dec. 31, 2021. This is their expense balance.
• The administrator will then add up the total plan recordkeeping fees deducted from all class members’ accounts during the same period.
• The class member's share (pro rata percentage) is their expense balance divided by the total expense balances of all class members.
• Their payment is their pro rata percentage multiplied by the net settlement amount (the amount left after deducting attorneys’ fees, costs and other expenses from the gross settlement fund).

No action needed to receive payment

Class members do not need to file a claim to receive their settlement payment. The settlement administrator will automatically process payments.

• Class members who currently have an Intuit 401(k) plan account will receive their payment deposited directly into their account and invested according to their current investment elections.
• Those who no longer have an Intuit 401(k) account will receive a check mailed to their last known address. Class members must cash checks within 180 days; after that, the settlement administrator will return uncashed funds to the plan to reduce administrative fees and expenses.

$1.99 million settlement fund breakdown

The $1,995,000 settlement fund covers:

• Settlement administration costs: Up to $90,000
• Attorneys’ fees and costs: Up to $665,000
• Service award to the named plaintiff: Up to $5,000
• Recordkeeper expenses: Up to $15,000
• Independent fiduciary expenses: Up to $25,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Final approval hearing: Nov. 13, 2025

When is the Intuit 401(k) settlement payout date?

The settlement administrator will issue payments approximately 60 days after it resolves appeals and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Intuit and its employee benefits administrative committee violated the Employee Retirement Income Security Act by using forfeited, nonvested employer matching contributions to offset future employer matching contributions. The plaintiff claimed this constituted a breach of fiduciary duties, a violation of ERISA’s anti-inurement provision and prohibited transactions.

Intuit denies all allegations. However, both sides agreed to settle the case to avoid the cost, risk and burden of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ