International Paper recently agreed to pay $30 million to participants in its 401(k) plan to settle a lawsuit originally brought in 2006. Plan participants claimed that the plan paid excessive fees for recordkeeping and investment management services, fraudulently reported performance histories for the plan's funds and that the sponsor improperly delayed contributions to the plans and retained interest earned on those contributions.

REINHART COMMENT: Although it is unclear why International Paper agreed to the settlement, this case illustrates that plan sponsors should continue to document regular, periodic due diligence with respect to the performance of, and fees paid to, plan service providers.