Florida-based NextEra Energy Inc., one of the world’s largest electric utilities, has settled a class-action lawsuit, agreeing to pay $8 million to some 20,000 employees who said the company had mishandled retirement funds.
Plaintiffs’ attorneys’ fees should not exceed 33% of the gross settlement amount, reads the settlement agreement, filed in U.S. District Court in Southern Florida.
The largely self-insured NextEra, owner of Florida Power & Light and one of the world’s largest renewable energy enterprises, did not admit liability in the settlement. It did agree to establish a settlement fund to be allocated to affected employees—an average of about $400 for each worker.
“Class Counsel believe that this Settlement reflects a reasonable compromise in light of the range of possible outcomes. Class Counsel believe that the Settlement is preferable to continued litigation and is in the best interest of the Members of the Settlement Class because the Settlement provides certainty with respect to the amount of recovery and results in a prompt recovery,” reads the agreement.
The employees filed suit in 2023, charging that the utility holding company had allowed excessive fees to Fidelity Workspace Services and had caused the value of company stock to slip by some $500 million.
“These fees, and astronomical retirement account losses, are tantamount to waste,” the complaint reads.
The complaint said plaintiffs were informed by publicly traded NextEra’s own financial reporting. The 2016 and 2018 compensation plan for Fidelity showed that the plan manager received indirect compensation.
“But rather than identify the amount of the indirect compensation, NextEra stated the amount of such compensation was ‘$0’ and then claims that Fidelity provided it with a ‘formula instead of an amount or estimated amount,’” the complaint reads. “The problem with this, of course, is that NextEra failed to disclose to Plaintiff or Plan participants what that alleged formula is, much less what application of that formula translates to in terms of the amount of ‘indirect compensation’ plan participants are paying to Fidelity.”
NextEra did not know the true amount of compensation paid to Fidelity, the plaintiffs argued.
Attorneys for the class of plaintiffs included those with Morgan & Morgan and with Wenzel Fenton Cabassa law firms in Tampa, and McKaw Law in Arizona.
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