U.S. District Judge Melinda Harmon approved a $37.5 million settlement between former employees invested in Enron's 401(k) and Northern Trust, which had been administrator of the plan, the Houston Chronicle reports.
The judge ruled that Northern Trust failed in its fiduciary duty by not diversifying the plan enough. To date, $264.3 million has been collected on behalf of the former employees. The judge also ruled that $23.9 million in legal fees and expenses should be deducted from the $264.3 million.
In reaching the settlement, Northern Trust neither admitted nor denied the allegations.