$2.25 Million Settlement Reached for Kimberly-Clark 401(k) Class Action Lawsuit

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A $2.25 million settlement has been reached to end a proposed class action lawsuit that alleged the parties that handle Kimberly-Clark Corporation’s 401(k) defined contribution pension plan allowed it to incur unreasonably high fees for administrative services.

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The proposed Kimberly-Clark deal now awaits preliminary approval from the court. If approved, the settlement would provide cash payments to anyone who was a participant or beneficiary of the Kimberly-Clark Corporation 401(k) and profit-sharing plan at any time between April 15, 2015 and the date the deal is preliminarily approved.

ClassAction.org will update this page if and when the deal receives preliminary approval from the court, so be sure to check back often.

According to court documents, class members do not have to do anything to receive their share of the $2,250,000 Kimberly-Clark settlement. Current plan participants covered by the deal will have funds automatically deposited into their plan account, and former participants will receive settlement proceeds by check.

“Former Participants who would be entitled to an amount of less than $25 from the Distributable Settlement Amount will receive no payment from the Settlement proceeds, even though they are Settlement Class Members,” a sample settlement notice says.

Settlement funds will be distributed to class members after the deal receives final approval from the court and all appeals are resolved. A date for the final approval hearing has not yet been set.

The initial class action suit was filed in April 2021 against Kimberly-Clark Corporation and its board of directors and benefits administration committee. The complaint accused the defendants of violating their legal obligations under the Employee Retirement Income Security Act, which requires plan sponsors to be cost-conscious when selecting service providers. Per the case, fiduciaries are also required to continually pension plans to ensure every investment remains prudent.

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