A number of class action lawsuits were recently filed over investment-related fees paid by 401(k) plans, targeting 401(k) plans of large employers. These complaints allege a variety of breaches of fiduciary duties and prohibited transactions resulting from excessive administration and management fees and improper fee sharing arrangements with mutual fund companies and other investment providers and service providers, such as record keepers, trustees and third party administrators, among other things. These lawsuits name the employer, as well as plan committees and their various individual members, directors and employees as defendants.
Plaintiffs’ law firms continue to investigate the fees paid by 401(k) plans to determine whether to file similar complaints against other employers. We will continue to monitor these developments. If you have questions on 401(k) plan fees, please contact Martin Smith, David Paik, or Michael Gerald.