Jack Henry & Associates $1.6M 401(k) ERISA Settlement

Danielle Toth

Editor

Published

December 10, 2025 2:23 PM

Updated

December 10, 2025

Individuals who participated in the Jack Henry & Associates Inc. 401(k) retirement savings plan at any time between Oct. 9, 2017, and Sept. 11, 2025, may be eligible to claim a cash payment from a class action settlement.

Jack Henry & Associates Inc. agreed to pay $1,600,000 to resolve a class action lawsuit alleging violations of the Employee Retirement Income Security Act in the administration of its 401(k) retirement savings plan.

Who are the class members?

Class members must have been a participant in the Jack Henry & Associates Inc. 401(k) retirement savings plan at any time between Oct. 9, 2017, and Sept. 11, 2025. This includes:

Current participants with an active account (a balance greater than $0) as of Sept. 11, 2025
Former participant who no longer has an active account in the plan as of Sept. 11, 2025
Beneficiaries or alternate payees of a current or former participant

How much can class members get?

The total settlement fund is $1,600,000. The amount each class member will receive depends on their account status and the plan of allocation.

After deductions for attorneys’ fees, administrative expenses and service awards to the class representatives, the settlement administrator will distribute the remaining funds to eligible class members.

How to claim class action rebate

Current participants with an active account in the plan as of Sept. 11, 2025, do not need to take any action. The settlement administrator will automatically deposit their share of the settlement into their plan account.

Former participants, or beneficiaries or alternate payees of former participants, who do not have an active account in the plan must submit a claim form to receive payment. They can file a claim online or download the PDF claim form (Page 42 of the settlement agreement) and mail it to the settlement administrator. The claim deadline is Feb. 10, 2026.

Settlement administrator’s mailing address: Lacrosse v. Jack Henry & Associates Settlement Administrator, P.O. Box 301134, Los Angeles, CA 90030-1134

What information is necessary to submit a claim?

All claimants must provide their date of birth and Social Security number.
To file a online claim, the claimant must provide the claim ID and PIN located on their settlement notice.
To file on behalf of a deceased class member, the claimant must provide evidence that they are authorized to receive distribution and, if applicable, the percentage of distribution each person is entitled to receive, as well as their names, Social Security numbers and mailing addresses.

Payout options

Current participants: The settlement administrator will deposit payment directly into their plan account.
Former participants: The settlement administrator will issue payment by check or by rollover to an IRA or eligible employer plan.
Beneficiaries/alternate payees: The settlement administrator will issue payment according to their status and selection on the claim form.

$1.60 million settlement fund breakdown

The $1,600,000 settlement fund will cover:

Settlement administration costs: To be determined
Attorneys’ fees: Up to $533,280
Attorneys’ expenses: To be determined
Service awards to class representatives: $10,000 each ($20,000 total)
Payments to class members: Remainder of the fund

Important dates

Deadline to file a claim: Feb. 10, 2026
Final approval hearing: Feb. 24, 2026

When is the Jack Henry ERISA settlement payout date?

The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged that Jack Henry & Associates Inc. and its retirement committee violated ERISA by mismanaging the 401(k) plan, potentially causing financial harm to participants.

The company denies any wrongdoing but agreed to the settlement to resolve the dispute and provide compensation to plan participants.