A group of wealth management and asset management firms has reportedly agreed to a $25.5m settlement in a class action lawsuit that accused them of conspiring to limit job mobility and suppress renumerations for thousands of financial professionals.

This class action settlement, which is awaiting final court approval, will benefit more than 4,400 current and previous employees, reported Reuters.

Lawyers representing the employees have asked a federal judge in Kansas to grant final approval for the nationwide settlement.

This agreement covers present and previous employees of firms such as Mariner Wealth Advisors and American Century Companies between 2012 and 2020, according to the report.

The plaintiffs had filed the lawsuit last year. They claimed that the firms breached antitrust law by agreeing not to recruit each other’s employees.

American Century and Montage Investments, another defendant, earlier entered into no-prosecution deals with the US Justice Department over related charges, according to court filings.

American Century expressed satisfaction in reaching a resolution to the workers’ lawsuit in Kansas and stated that it “remains committed to fair and honest competition in compliance with all laws and regulations.”

Representatives for Mariner Wealth Advisors and Montage Investments did not immediately respond to requests for comment. Lead attorneys for the plaintiffs also did not provide immediate comment, reported the news outlet.

The wealth and asset management firms have denied any wrongdoing in the case.

According to the plaintiffs, Mariner defendants manage about $65.9bn in assets, while American Century defendants manage about $230bn in assets. As per their statement, the settlement offers prompt and substantial compensation to impacted employees while eliminating the uncertainty and costs associated with ongoing legal proceedings.

Settlement payments will be determined based on factors such as the length of employment, as detailed in court documents.

Lawyers representing the plaintiffs estimate that each eligible employee will automatically receive an average payment of approximately $3,700.

The settlement also stipulates that the plaintiffs’ lawyers will seek up to one-third of the settlement fund, or about $8.5m, for legal fees.

The case is titled Jakob Tobler et al v. 1248 Holdings LLC, US District Court for the District of Kansas, No. 2:24-cv-02068-EFM-GEB.

Legal representation for the plaintiffs includes George Hanson of Stueve Siegel Hanson and Rowdy Meeks of Rowdy Meeks Legal Group. Mariner Wealth Advisors is represented by Jonathan King of DLA Piper, while American Century Companies is represented by John Schmidtlein of Williams & Connolly.