verdicts & settlements


Settlement to End ERISA Suit with Raytheon


Trial Win in ESOP Case


Settlement with Wilmington Trust to End ERISA Class Action

The PepsiCo Savings Plan & 401(k) Lawsuit

Bailey Glasser is currently investigating claims that PepsiCo, Inc. mismanaged employee retirement funds, overcharging employees when allocating company stock.  If the allegations are true, PepsiCo, Inc. employees may have lost millions of dollars as a result.  

If you or a loved one were a participant in the PepsiCo Savings Plan or a PepsiCo 401(k), you may be eligible for financial compensation.  Contact Bailey Glasser as soon as possible for a free and confidential consultation.

Who May Be Eligible for a Claim?

If you are a current or former employee of PepsiCo, Inc. and participated in a defined contribution plan, you may be eligible for a claim. Specifically, claimants must have:

  • Participated in the PepsiCo Savings Plan or the PepsiCo 401(k) Plan for Hourly Employees
  • Been a participant in 2018 and earlier
  • Both current and former employees are eligible

If you or a loved one meet these criteria, it is in your best interests to speak with an attorney as soon as possible to protect your rights.   

Why Choose Bailey Glasser?

  • At Bailey Glasser, we have extensive trial and class action experience in complex pension, 401(k) plan, and employee stock ownership plan (ESOP)  lawsuits in federal court.  We understand complex financial transactions, investments, and instruments.  
  • Our attorneys have recovered hundreds of millions of dollars on behalf of employees who lost retirement savings in 401(k) plans and ESOPs. 
  • There are no upfront costs.  We handle all cases on a contingency fee basis, meaning we take all the financial risk and only charge a fee if we successfully resolve your claim.

An Overview of the Allegations

Both the PepsiCo Savings Plan and the  PepsiCo 401(k) Plan for Hourly Employees are defined contribution retirement plans for employees of PepsiCo Inc. What that means is that the plan establishes an account for each participant where a defined amount is contributed by the participant, the employer, or both. 

Pepsico holds convertible preferred stock in the plan. When it makes allocations of that stock to employees or participants it converts the preferred stock to common stock. The conversion price must be at no less than fair market value. Because the convertible preferred stock is not publicly traded, fair market value must be determined based on the standard of what hypothetical, arm’s length buyers and sellers would pay or sell for. The issue is that PepsiCo may not have complied with the standard. As a result, its employees may not have received fair market value when the stock is converted, costing them millions of dollars.

While this is an emerging issue, it appears to be very similar to the Wells Fargo 401k case, where Wells Fargo agreed to pay $145 million to end a Department of Labor investigation into the mishandling of its employees’ 401(k) retirement accounts.  

What Should I Do If I Was Affected?

If you or a loved one participated a PepsiCo defined contribution retirement plan, you may have lost a significant portion of your retirement savings.  However, as an investor, you have rights and may be eligible to file a claim.  Please call us or fill out our contact form as soon as possible.  Our attorneys will examine the facts and thoroughly explain your legal options.  If you do have a valid claim, Bailey Glasser can handle every aspect of your claim, from inception to a successful resolution.

greg and mark

Meet the Attorneys

20+ Years of Experience on Your Side

Greg Porter

Greg has recovered hundreds of millions of dollars on behalf of employees who lost retirement savings in 401(k) plans and ESOPs. He understands complex financial transactions, investments, and instruments.

Mark Boyko

Mark is highly skilled in all things related to ERISA class action litigation, including litigation regarding 401k plans. He has represented workers and retirees in many of the earliest cases in this industry. In these matters, Mark represents 401(k) plan participants alleging breach of fiduciary duties in order to hold employers and Wall Street accountable for the plans’ investments and fees.

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