The TTEC lawsuit picture in 2026 spans four fronts: a $750,000 ERISA class action settlement over the company’s 401(k) plan that received final court approval, a $2.5 million data breach settlement finalized in 2024, active wage-and-hour cases brought by remote customer service agents, and a securities-law investigation that has not yet produced a filed complaint. If you worked at TTEC, held its stock, or had personal data exposed in the 2021 breach, the case that most likely affects you is one of the two settlements.
The $750,000 401(k) Settlement
The retirement plan case, Carimbocas v. TTEC Services Corp., was filed in August 2022 in the U.S. District Court for the District of Colorado. Three employees sued on behalf of roughly 26,000 participants and beneficiaries in TTEC’s 401(k) Profit Sharing Plan, alleging that the company and its Employee Benefits Committee breached fiduciary duties under ERISA by allowing the plan to pay excessive recordkeeping fees.1Lieff Cabraser. Lieff Cabraser Files ERISA Class Action Against TTEC for Millions in 401(k) Plan Losses The class period runs back to August 25, 2016.2TTEC 401K Settlement. Carimbocas v. TTEC Services Corp. Settlement
The parties settled for $750,000. Judge Charlotte N. Sweeney granted preliminary approval, held a final fairness hearing on January 22, 2026, and ultimately granted final approval.3Bloomberg Law. TTEC Services Gets First Nod for $750,000 Retirement Fee Accord4Law360. Tech Co.’s $750K 401(k) Suit Deal Gets Final OK
Who Gets Paid and How
The settlement was certified as a mandatory class under Federal Rule of Civil Procedure 23(b)(1). You cannot opt out, and you do not need to file a claim. Payments are automatic. If you still have a plan account, your share is credited to it. If you’re a former participant, you receive a check. Each person’s share is proportional to their account balances during each year of the class period from 2016 through 2024, which serves as a proxy for the recordkeeping fees attributable to that account. Anyone whose calculated share works out to $10 or less receives nothing.5TTEC 401K Settlement. Frequently Asked Questions
Distributions are expected roughly three months after any appeals are resolved.5TTEC 401K Settlement. Frequently Asked Questions Deductions from the gross fund include attorneys’ fees of up to one-third for class counsel Lieff Cabraser Heimann & Bernstein and Werman Salas P.C., up to $35,000 in litigation costs, service awards of up to $5,000 for each of the three named plaintiffs, and administrative expenses including a fee for the independent fiduciary Gallagher Fiduciary Advisors.6TTEC 401K Settlement. Carimbocas v. TTEC Settlement Agreement
What the Case Was About
The plaintiffs alleged that TTEC’s plan participants paid recordkeeping fees well above what a prudent fiduciary would have negotiated for a plan its size. Fees under Merrill Lynch ran $59 per participant in 2016 and 2017 and $54 in 2018 and 2019; after a switch to T. Rowe Price, the fee dropped to $45 in 2020 and 2021 and $43 in 2022. The plaintiffs pointed to the Bricklayers and Trowel Trades’ International Retirement Savings Plan, which they said offered the same seven recordkeeping services for $25.56 per participant in 2021.7GovInfo. Carimbocas v. TTEC Services Corp., Second Amended Complaint Order The plan held nearly $200 million in assets as of January 2020, which the plaintiffs said gave TTEC ample leverage to negotiate lower fees.1Lieff Cabraser. Lieff Cabraser Files ERISA Class Action Against TTEC for Millions in 401(k) Plan Losses
Active Wage Lawsuits From Remote Workers
Two active cases in the same Colorado federal court accuse TTEC of underpaying its remote customer service agents.
Wilfong v. TTEC: Off-the-Clock Work
Filed in April 2024, this collective action alleges TTEC did not pay remote agents for work performed before and after their scheduled shifts, including logging into computer and phone systems, and required them to keep working past shift end without pay.8Customer Experience Dive. TTEC Lawsuit Labor Violations Overtime In February 2025, Judge Sweeney granted conditional certification and authorized notice to potential opt-in plaintiffs.9Leagle. Wilfong v. TTEC Services Corporation
As of mid-2026 the case is stayed for mediation, with a second mediation session expected in June 2026. The statute of limitations for putative class members has been tolled since October 2025. If mediation fails, the parties must file a status report by June 30, 2026.10PacerMonitor. Wilfong v. TTEC Services Corporation
Alvarez v. TTEC: Unreimbursed Equipment Costs
Filed October 15, 2024, this case takes a different angle. Plaintiff Loren Alvarez alleges TTEC required remote agents to buy their own computers, ethernet hardware, and upgraded internet plans to pass company-mandated speed tests, all without reimbursement. The complaint argues those out-of-pocket costs effectively pushed workers’ hourly rates below what they should have earned in overtime, violating the Fair Labor Standards Act and the Virginia Overtime Wage Act. The suit estimates about 10,000 employees could join under the FLSA and roughly 200 under Virginia law.8Customer Experience Dive. TTEC Lawsuit Labor Violations Overtime
TTEC moved to compel arbitration. In February 2026, Chief Judge Philip A. Brimmer sent two additional plaintiffs, Lamis Baker and Guadalupe Vega, to arbitration and denied the plaintiff’s motion to amend the complaint to add new named plaintiffs. The case was administratively closed, though any party can move to reopen after arbitration ends.11PacerMonitor. Alvarez v. TTEC Services Corporation
The 2021 Data Breach Settlement
In September 2021, TTEC discovered a breach that exposed the personal information of nearly 200,000 people, including current and former employees, prompting several class actions in early 2022.12ClassAction.org. TTEC Services Corp. Litigation13Bloomberg Law. TTEC Services to Pay $2.5 Million to Settle Data Breach Suit14Top Class Actions. TTEC Health Net Data Breach $2.5M Class Action Settlement The claims window for this settlement has closed.
Securities Investigation
In early 2024, the law firm Levi & Korsinsky announced an investigation into possible federal securities-law violations by TTEC Holdings following the company’s February 29, 2024 earnings announcement. TTEC missed consensus non-GAAP earnings estimates and cited client budget constraints and the loss of a business line at a long-tenured client. The stock dropped more than 20% the next day.15Access Newswire. Shareholder Rights Advocates at Levi and Korsinsky Investigate TTEC Based on the available record, no securities class action complaint has been filed; the matter remains at the investigation stage, so there is no case to join or claim to file.
TTEC’s Financial Standing and the 401(k) Match Suspension
TTEC Holdings, Inc. (NASDAQ: TTEC) is publicly traded and headquartered in Austin, Texas. For full-year 2025 the company reported $2.137 billion in revenue and a net loss of $185.1 million, driven largely by a $205.4 million goodwill impairment charge tied to its TTEC Digital unit in the fourth quarter.16TTEC. TTEC Announces Fourth Quarter and Full Year 2025 Financial Results As of the first quarter of 2026, TTEC carried $889 million in credit facility debt with a net leverage ratio of 3.77 and about $50 million in remaining borrowing capacity. Management said it expects to remain in covenant compliance for the next 12 months, though the leverage ratio must step down to 3.00 by the third quarter of 2027.17Stock Titan. TTEC Holdings Inc. Quarterly Earnings Report (10-Q)
In April 2026, TTEC told employees it was suspending discretionary 401(k) matching contributions for the rest of the year to free up money for AI and automation investments.18HR Executive. Deloitte, Zoom and TTEC Benefits Cuts Highlight Growing HR Challenges If you’re a current participant, that change affects future contributions to the same plan whose past management was at issue in the Carimbocas settlement.