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Mercedes-Benz Lawsuit

Plaintiffs in this case, participants in the nearly $1 billion Mercedes-Benz defined contribution plan, have alleged that the Plan fiduciaries (the company, Board of Directors, and employee benefit plan administrative committee) have allowed unreasonable and excessive fees relative to services received. More specifically, the Plan is said to have paid between $239 and $567 per participant annually for recordkeeping and administration services during the class period, when a reasonable per participant fee for a similarly situated plan would have averaged $53 per participant annually. Further, the defendants are accused of paying exorbitant investment advisory service fees of $300,000 annually, when reasonable fees would amount to no higher than $100,000 annually. Plaintiffs also allege that plan fiduciaries did not understand the mechanics of revenue sharing fee payments to recordkeepers.

www.plansponsor.com; January 21, 2021.