If you were involved in LinkedIn's 401(k) Profit Sharing Plan and want to try to cash in on the social media giant's $6.75 million settlement case, you have just a few hours left to file for your chunk of change.
LinkedIn agreed to the settlement earlier this year after its administrators were accused of mismanaging its 401(k) retirement plan and failing to use the lowest-cost share class for many mutual funds.
Active members of the plan will qualify for the payout automatically, but former members will need to take action before the November 10 deadline. That's today, so read on as we explain how you can make a claim.
Details of the LinkedIn Settlement Closing Today
In March of this year, the professional social media platform LinkedIn agreed to pay $6.75 million to settle a lawsuit filed by current and former members of its 401(k) plan.
The plaintiffs – Douglas G. Baily, Jason J. Hayes, and Marianne Robinson – first sued the company in August 2020 claiming the retirement plan violated Employee Retirement Income Security Act (ERISA) laws by charging excessive fees and offering substandard investment options.
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They alleged that administrators of the $817 million 401(k) plan failed to use the lowest cost share and their “substantial bargaining power” to lower the price of the fees.
“This is another in a growing group of lawsuits in which the plaintiffs allege that plan fiduciaries imprudently chose funds with excessive fees as investment options under a 401(k) plan,” – Andrew Oringer, partner and general counsel with the Wagner Law Group
Plaintiffs also claimed that the plan had conflicts of interest, as Fidelity, a third-party investment firm, was the recordkeeper and the asset manager of the fund, placing them in “positions that allowed them to receive profits from the plan at the expense of plan participants.” Hardly a fully fledged LinkedIn scam, but still a serious accusation.
Despite initially asking US District Judge Edward J. Davila to dismiss all allegations, the Judge decided the case would be brought to trial in November 2021. Now, with the November 10 deadline looming, participants only have two days left to take action – but who is eligible to make a claim?
Who's Eligible to Claim in the LinkedIn's $6.75m Settlement?
If you were a member of LinkedIn's 404(k) retirement plan from August 14, 2014, to July 1, 2020, you'll be eligible for a payment and will be able to make a claim.
If you're currently enrolled in the plan – and were active during this period – there's no need to claim as you'll automatically receive a deposit in your investment account. However, if you were involved between those dates but have since pulled out, you'll have to apply for a slice of the pie. We explain how to do that below.
According to a US District Court filing, the amount you're entitled to will vary from participant to participant and will be determined by how much you invested.
How to Make a Claim in the LinkedIn Settlement
To make a claim, you simply need to fill out this Strategic Claims form and enter personal information like your name, address, date of birth, and social security number. You'll also be expected to select payment options and enter payment information.
While the settlement's final approval hearing isn't scheduled until November 16, the final deadline for making a claim is on November 10. So, if you don't take action before then, you risk missing out on your settlement share.
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