The plaintiffs allege plan fiduciaries used what it calls ‘cobbled-together services from many providers’ and didn't monitor fees for any of them.
Plan fiduciaries' motions to dismiss the excessive fee suit were denied as a federal judge found the plaintiffs' claims were plausible.
Brenntag North America denied any wrongdoing regarding the alleged failures that plaintiffs said caused excessive investment and recordkeeping fees in its retirement plan.
The complaint against Wesco Distribution also alleges that the defendants chose higher-cost share classes for investments.
The judge found that plaintiffs in the case challenging the use of an actively managed TDF suite rather than its index version have pleaded sufficient claims.
One feature the new complaint has in common with suits filed previously by Capozzi Adler is its reliance on comparing the plan’s expenses for investments and administration services with a group of alleged peers.
Claims were also moved forward against defendant Aon Hewitt Investment Consulting related to a target-date fund (TDF) switch.
Fiduciaries of the multiple employer plan of professional employer organization (PEO) Nextep, Inc. are being sued over excessive investment and recordkeeping fees.
The proposed settlement agreement also includes non-monetary terms.
Participants of a terminated 403(b) plan say the plan sponsor's fiduciary breaches caused them approximately $4.6 million in losses.
Researach also found that mutual funds that pay revenue sharing are more likely to be added to plan investment menus and are less likely to be deleted from them
Fiduciaries are accused of failing to switch to and investigate the availability of lower-cost versions of funds offered in the plan.
A federal judge granted Cerner’s motion to dismiss the case then reopened it on the same day, announcing the parties were to discuss a potential settlement.
The lawsuit accuses plan fiduciaries of failing to benchmark recordkeeping fees and failing to monitor investment fees, among other things.
Admitting no wrongdoing, Reliance Trust will pay $39.8 million to settle the case.
The lawsuit contends that, in most cases, the managed account service added no material value to participants, creating asset allocations 'not materially different than' those of the age appropriate target-date options for participants.
The high court has been asked to weigh in on whether allegations that investment fees charged were excessive compared to other investments is sufficient to state a claim of imprudence.
The lawsuit challenges the use of actively managed funds over passive funds and the use of higher-cost share classes, among other things.
Pentegra Retirement Services and other plan fiduciaries are accused of failing to make sure fees are reasonable and acting in Pentegra’s, not plan participants', interest.
The lawsuit is one of many filed recently claiming that the use of an index suite of Fidelity TDFs is more prudent.