In a landmark settlement, Evergy and its contractor SageView Advisory Group have agreed to pay a staggering $2.6 million to former employees, marking a significant victory for workers' rights. This class-action lawsuit, filed by three former Evergy employees, Derick Doll, Catherine Fluegel, and Joseph Nagle, highlights a critical issue in corporate retirement fund management. The case centers around the alleged failure to remove underperforming American Century Fund Target Date Funds from the company's 401(k) retirement plans, causing financial harm to employees.
The settlement agreement, filed in the Western District Court of Missouri, reveals the extent of the financial impact. Evergy, the primary defendant, will contribute $1.7 million, while SageView Advisory Group, the contractor responsible for managing the retirement plans, will pay $900,000. This substantial amount underscores the severity of the alleged mismanagement and the potential losses incurred by the employees.
The lawsuit, filed in January 2025, alleged that Evergy failed to act on the underperformance of the American Century funds, which were still offered to employees despite their poor performance. Missouri District Judge Stephen Bough granted class-action status in October 2025, recognizing the widespread impact on Evergy's employees. The class action includes any former or current Evergy employee who invested in the American Century funds since January 2019, indicating the scale of the issue.
This settlement serves as a powerful reminder of the importance of corporate accountability in retirement fund management. It highlights the potential consequences when companies fail to address underperforming investment options, potentially leading to financial losses for employees. The substantial settlement amount not only provides financial relief to the affected employees but also sends a strong message about the need for transparency and responsible management in retirement plans.
As the settlement process moves forward, with a settlement administrator appointed and a final approval hearing scheduled, this case underscores the critical role of legal action in holding corporations accountable for their financial obligations to employees. It also serves as a cautionary tale for other companies, emphasizing the importance of regular review and adjustment of retirement fund options to ensure the best interests of employees are served.
