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Estee Lauder

Plaintiffs in the case, former participants in the Estee Lauder Companies 401(k) Plan, have filed a proposed class action lawsuit, claiming that plan fiduciaries – the Company, Board of Directors, and the Plan’s investment committee, breached ERISA fiduciary duties, selecting overly expensive, poor performing investments for the Plan relative to comparable investments otherwise available. More specifically, the Plan offered private label collective trust target date funds offered by JPMorgan, when other non-private labeled, less expensive CITs offered by JPMorgan were available. The lower cost CITs, comprised of the same underlying investment as the mutual fund counterparts, managed by the same investment manager, would post greater returns than the current private label CITs, that not only were more expensive, but had no apparent additional services or benefits for the uptick in cost.

www.planadviser.com; June 26, 2020.