The $2.85 million Grainger 401(k) settlement will pay small pro rata shares to more than 30,000 plan members. After fees, costs and administration, each payment will reflect a member's quarterly account balances. Forfeitures are unvested employer contributions left behind when workers leave before vesting. The case concerns how Grainger used those funds inside its retirement plan.
Official resources:
- Read the official notice from Openclassactions — Use this primary source to verify the official announcement.
- Read the official notice from Bloombergtax — Use this primary source to verify the official announcement.
Table of Contents
- Who is included?
- How will shares be calculated?
- Do you need to file a claim?
- What did the lawsuit challenge?
- When could payments arrive?
Who is included?
The proposed class covers people who participated in Grainger's retirement plan since May 2019. Bloomberg Tax reported the deal would cover more than 30,000 people and represent about 20% of plaintiffs' estimated losses in its October 2026 settlement report.
That size points to modest individual recoveries. The target plan had 30,294 participants and $3.45 billion in assets at year-end 2023, according to the National Association of Plan Advisors in its May 2025 plan-size report.
How will shares be calculated?
The $2.85 million fund will be divided pro rata based on members' quarterly account balances. OpenClassActions described that formula, after deductions for fees, costs and administration, in its October 2026 settlement summary.
Higher balances over more quarters mean a larger share. Lower balances, shorter participation, and approved deductions mean a smaller payment.
Do you need to file a claim?
Eligible members need file nothing. Current account holders would receive account credits.
Former participants and other non-current holders would receive checks automatically. Payments will use plan records, so a current mailing address matters.
- Stay in the plan's record system if you are a current holder.
- Keep your mailing address current with the plan recordkeeper if you left.
- Watch for a court-approved notice explaining fees and timing.
What did the lawsuit challenge?
The lawsuit is Gardner-Keegan v. W.W. Grainger, No. 1:25-cv-05233, filed May 12, 2025. Plaintiffs claimed forfeitures offset Grainger's contributions instead of first paying administrative expenses, according to OpenClassActions.
The court dismissed prohibited-transaction claims on Jan. 26, 2026 but allowed fiduciary-breach claims to proceed. Bloomberg Tax's January 2026 ruling coverage said the court read Plan Section 8.4 to prioritize expenses. Plaintiffs sought preliminary approval on Oct. 23, 2026 before Judge Mary M. Rowland.
When could payments arrive?
The settlement is not yet approved and has no settlement website. It also has no payment date, according to OpenClassActions.
Court review comes first, then fee awards and administration. Only after those deductions will credits and checks go out automatically.