Knight-Swift Transportation $3M ERISA Settlement, Retirement Plan Participants Get Automatic Payments—Final Hearing April 1, 2026
Knight-Swift Transportation Holdings agreed to pay $3 million to settle a class action lawsuit alleging the company breached fiduciary duties under ERISA by allowing excessive fees and imprudent investment options in its retirement plan. All participants in or beneficiaries of the Knight-Swift Retirement Plan between October 26, 2016, and November 26, 2025, will automatically receive pro-rata payments without filing claims—the settlement administrator uses plan records to identify and pay class members. The court scheduled a final approval hearing for April 1, 2026, at 10:00 AM, with payments distributed approximately 60-90 days after approval.
What Is The Knight-Swift ERISA Class Action Settlement About?
The settlement resolves allegations that Knight-Swift violated federal law governing employee retirement plans by failing to properly manage plan costs and investment options.
On October 26, 2022, participants Robert Hagins and Tommie Woodard filed a class action lawsuit (Case No. 2:22-cv-01835-PHX-ROS) in U.S. District Court for the District of Arizona. They claimed Knight-Swift breached fiduciary duties of prudence under the Employee Retirement Income Security Act—federal law requiring retirement plan sponsors to act in participants’ best interests.
What ERISA Violations Did The Lawsuit Allege?
The complaint alleged three primary failures by Knight-Swift as plan fiduciary.
First, excessive recordkeeping and administrative fees. Plaintiffs claimed Knight-Swift allowed the plan to pay unreasonable costs for services that could have been obtained cheaper elsewhere, failing to leverage the plan’s $789 million in assets to negotiate better rates.
Second, high-cost investment options. The lawsuit alleged Knight-Swift selected and retained expensive mutual funds when identical lower-cost versions were available. For example, retail share classes instead of institutional share classes with lower expense ratios.
Third, misuse of plan forfeiture funds. Plaintiffs alleged Knight-Swift improperly allocated forfeited assets from departed employees to reduce company contributions rather than paying plan expenses, shifting costs to participants.
Knight-Swift denied all allegations but agreed to settle to avoid litigation costs, risks, and business disruption.
Who Qualifies For The Knight-Swift Retirement Plan Settlement?
The settlement class includes all persons who were participants in or beneficiaries of the Knight-Swift Transportation Holdings Inc. Retirement Plan at any time from October 26, 2016, through November 26, 2025.
This covers both current and former employees who had 401(k) accounts in the plan during this nine-year period. As of 2023, the plan had 28,467 participants with more than $789 million in assets.
How Much Money Will Knight-Swift Participants Receive?
The $3 million gross settlement fund will be distributed pro-rata among all eligible class members based on their average account balances.
How The Settlement Payment Calculation Works
After deducting attorneys’ fees (estimated at 25-33%), administrative costs, and litigation expenses, the remaining net settlement amount gets divided among class members proportionally.
The settlement administrator calculates each person’s share using this formula: First, determine your average account balance by averaging your year-end balances from 2016 through 2025. Next, add together all class members’ average balances to get the total. Then divide your average balance by the total to get your percentage share. Finally, multiply your percentage by the net settlement fund to determine your payment.
Workers with larger average account balances receive proportionally larger payments. Those with smaller balances or shorter plan participation receive less.
When Will Payments Be Distributed?
Payments will be issued approximately 60-90 days after the final approval hearing on April 1, 2026, assuming the court approves the settlement and no appeals are filed.
Expect payments in June or July 2026 if the settlement receives final approval without complications. Current Knight-Swift employees may receive payments as direct credits to their retirement accounts, while former employees will receive checks or rollovers.
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No Claim Form Required—Payments Are Automatic
Unlike many class action settlements, you don’t need to file a claim form. The settlement administrator (American Legal Claim Services LLC) will use Knight-Swift’s plan records to identify all class members and calculate payments automatically.
However, you must keep your contact information current. If you’ve moved since leaving Knight-Swift or changed addresses recently, update your information at knight-swifterisasettlement.com/page/update-address.
What You Must Know About ERISA Retirement Plan Lawsuits
ERISA excessive fee lawsuits have become increasingly common, with over 100 cases filed in 2025 targeting retirement plan sponsors for fiduciary breaches.
How This Settlement Compares To Other ERISA Cases
Knight-Swift’s $3 million settlement falls in the typical range for mid-sized plan excessive fee cases. Recent comparable settlements include UnitedHealth Group at $69 million for a plan with $49 billion in assets, and smaller settlements ranging from $1.15 million to $9.6 million for plans with fewer participants.
The settlement amount generally correlates with plan size, strength of claims, and litigation stage. Knight-Swift reached agreement relatively early after mediation in August 2025, before expensive discovery and expert witness battles.
What This Case Means For 401(k) Participants
The settlement underscores plan sponsors’ legal duty to monitor fees and investment options continuously. Even large, well-known companies face liability when retirement plan costs exceed reasonable levels or when cheaper identical investment options exist.
Plan participants should regularly review their 401(k) statements for fee disclosures, compare investment expense ratios to industry benchmarks like target-date funds and index funds, and question unusually high recordkeeping charges (over $35-50 per participant annually).
Similar cases affecting workers in other retirement plans include the Verizon class action lawsuit settlement where promised payments were dramatically reduced through pro-rata allocation.
Key Dates And Next Steps
March 18, 2026: Objection deadline if you oppose settlement terms
April 1, 2026, 10:00 AM: Final approval hearing at U.S. District Court for the District of Arizona, Sandra Day O’Connor U.S. Courthouse, 401 West Washington Street, Phoenix, AZ
How To Object To The Settlement
If you believe the settlement is unfair or inadequate, you can object by March 18, 2026. Written objections must be mailed to Class Counsel, Defense Counsel, and filed with the Court. Visit knight-swifterisasettlement.com/page/faq for complete objection procedures.
You may also appear at the April 1 hearing to voice your concerns directly to Judge Roslyn O. Silver.
Where To Get More Information
Settlement Website: knight-swifterisasettlement.com
Settlement Administrator: American Legal Claim Services LLC, PO Box 23668, Jacksonville, FL 32241
Phone: 1-800-620-5873
Email: [email protected]
All court documents including the settlement agreement, class action complaint, and preliminary approval order are available on the settlement website’s documents page.
Frequently Asked Questions
Do I need to file a claim to receive payment from the Knight-Swift settlement?
No. The settlement provides automatic payments to all class members. The settlement administrator uses Knight-Swift’s plan records to identify eligible participants and calculate payments based on your average account balance during 2016-2025. You don’t need to take any action to receive payment.
How much will I receive from the $3 million Knight-Swift ERISA settlement?
Your payment depends on your average retirement account balance compared to all other class members. Those with larger balances receive more; those with smaller balances receive less. After attorneys’ fees (estimated 25-33%) and administrative costs, the remaining funds are divided proportionally among approximately 28,000+ participants.
When will I get my Knight-Swift settlement payment?
Payments will be distributed approximately 60-90 days after the April 1, 2026 final approval hearing, likely in June or July 2026. Timing depends on court approval and whether any appeals are filed. Current employees may receive credits to retirement accounts while former employees receive checks.
What was the Knight-Swift lawsuit about?
The lawsuit alleged Knight-Swift breached ERISA fiduciary duties by allowing excessive recordkeeping fees, selecting high-cost investment options when cheaper identical alternatives existed, and improperly using forfeited retirement assets. Knight-Swift denied all allegations but settled to avoid litigation costs.
Can I opt out of the Knight-Swift ERISA settlement?
No. The settlement does not provide an opt-out option because ERISA cases are brought on behalf of the retirement plan itself, not individual participants. All class members are bound by the settlement terms once approved.
Last Updated: January 26, 2026
Disclaimer: This article provides general information about the Knight-Swift Transportation ERISA settlement and is not legal advice—individuals seeking claim assistance or case-specific guidance should consult qualified ERISA attorneys.
Don’t miss your automatic payment—update your contact information now at the settlement website to ensure you receive your settlement check when payments are distributed in 2026.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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