Salesforce $1.35 Million ERISA Class Action Settlement

If you were a participant in the Salesforce 401(k) Plan from March 11, 2014, through October 11, 2024, you may be eligible to claim a portion of a $1,350,000 award from a class action settlement.

Salesforce.com, Inc. has agreed to pay this amount to settle a class action lawsuit for alleged violations of the Employee Retirement Income Security Act (ERISA) related to the management of its 401(k) Plan.

The lawsuit claimed that certain funds were improperly selected and maintained as investment options, and that the Salesforce Board of Directors failed to monitor the Plan's fiduciaries. Salesforce denies these allegations but has agreed to the settlement to avoid further litigation costs.

Who are the class members?

Class members include individuals who participated in the Salesforce 401(k) Plan during the specified period. The eligibility criteria are as follows:

• Current Participants: Those with an Active Account in the Plan do not need to take any action to receive payment. Payments will be automatically deposited into their Plan accounts.
• Former Participants: Those without an Active Account must submit a claim form to receive payment. This also applies to Beneficiaries or Alternate Payees of Former Participants.

To be considered a Former Participant, you must have had an account with a positive balance during the Class Period but not as of October 11, 2024. If you meet these criteria, you are entitled to submit a claim form to receive your share of the settlement.

How much can class members get?

The settlement provides a Net Settlement Amount, which is the Gross Settlement Amount of $1,350,000 minus deductions for attorneys' fees, administration expenses, and other costs. The exact amount each class member receives will depend on a Plan of Allocation approved by the Court.

• Current Participants: Payments will be made directly into their Plan accounts.
• Former Participants: Must submit a claim form to receive payment by check or rollover to an eligible retirement account.

The distribution to each class member will be calculated based on their individual investment in the Plan during the Class Period. The Net Settlement Amount will be divided among eligible class members according to the Plan of Allocation. If the amount you are entitled to is $9.99 or less, and you are a Former Participant, no distribution will be made to avoid disproportionate expenses.

How to claim an award

Current Participants: no action is needed to receive your payment.

Former Participants: download a claim form and mail it to the Settlement Administrator.

Send the completed form to:

Salesforce 401(k) Settlement Administrator

P.O. Box 2009

Chanhassen, MN 55317-2009

Claim instructions (former participants)

1. Download the Former Participant Claim Form if you are a former participant/employee
2. Complete the form with your personal information, including your Social Security Number and date of birth.
3. Choose your payment method: check or rollover distribution.
4. Mail the completed form to the address provided above by February 11, 2025.

Payment methods

• Direct deposit into Plan accounts for Current Participants.
• Check or rollover distribution for Former Participants.

$1.35 Million settlement fund breakdown

The settlement fund of $1,350,000 will cover:

• Attorneys' fees up to $449,955
• Litigation expenses up to $150,000
• Case Contribution Awards for Class Representatives
• Administration expenses

The Net Settlement Amount, which is the remaining fund after these deductions, will be distributed among eligible class members.

Important dates

• Fairness Hearing: April 4, 2025
• Deadline to File a Claim: February 11, 2025

When is the Salesforce ERISA Settlement payout date?

The Court will hold a Fairness Hearing on April 4, 2025, to consider any objections. If approved, the settlement will proceed, and payments will be distributed to eligible class members after any appeals are resolved.

Why was there a class action settlement?

The lawsuit alleged that Salesforce violated ERISA by mismanaging the 401(k) Plan. Salesforce denies the allegations but agreed to settle to avoid further litigation costs. The settlement allows both parties to avoid the uncertainties and expenses of continued litigation.