A settlement has been reached in which plaintiffs claim that Citigroup breached fiduciary duties under ERISA by offering and retaining affiliated funds in its 401(k) plans despite the availability of lower-cost, better performing funds. Citigroup will pay $6.9 million, which includes attorney’s fees, inclusive but not limited to incentive awards, and litigation expenses. The original 2007 lawsuit alleged that Citigroup benefitted through the selection of investment vehicles and pension plan services offered/managed Citigroup subsidiaries /affiliates, generating substantial revenues for Citigroup to the detriment to the 401(k) Plan.
www.planadviser.com; August 8, 2018.
www.investmentnews.com; August 6, 2018.