NextEra Energy $8M ERISA Class Action Settlement

Current and former employees who participated in the NextEra Energy employee retirement savings plan at any time between Sept. 25, 2017, and March 17, 2026, may be eligible to claim a payment from a class action settlement.

NextEra Energy Inc. agreed to pay $8 million to settle a class action lawsuit alleging breaches of fiduciary duty under the Employee Retirement Income Security Act. The plaintiffs claim NextEra Energy caused the plan to pay excessive administrative fees and improperly used plan forfeitures to offset company matching contributions rather than using those forfeitures to pay plan expenses as required by its terms.

Who are the class members?

Class members are current or former employees who participated in the NextEra Energy employee retirement savings plan at any time between Sept. 25, 2017, and March 17, 2026. This includes beneficiaries of deceased persons and alternate payees of persons subject to a qualified domestic relations order who participated in the plan during the class period.

How much will settlement payments be?

• Pro rata payment: Eligible class members will receive a pro rata share of the net settlement fund. The settlement administrator will determine the payment amount by the court-approved plan of allocation.
• Participants with an account balance always below $5,000 during the class period who did not pay administrative fee, will not receive a payment.
• Former participants with a calculated payment less than $25 will not receive a payment.

No claim form required

Class members do not need to submit a claim form to receive a settlement payment. Former participants can update their address information online using the notice ID and PIN from the settlement notice they received.

Payout options

• Current participants: Payment deposited into their plan account
• Former participants: Paper check mailed to the address on file with the settlement administrator

$8 million settlement fund breakdown

The $8,000,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,666,666.66
• Attorneys' expenses: $44,921.18
• Independent fiduciary fees: Up to $25,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Final fairness hearing: Sept. 18, 2026

When is the NextEra Energy 401(k) settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged NextEra Energy Inc. breached its fiduciary duties under ERISA by causing the plan to pay excessive administrative fees and using plan forfeitures to offset company matching contributions instead of paying plan expenses in violation of the plan’s terms.

NextEra Energy denies the allegations but agreed to settle to avoid the expense and risk of further litigation and a possible trial.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement agreement