A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
MGM Resorts International Excessive Fee Lawsuit
Participants in the MGM Resorts 401(k) Plan have alleged a breach of fiduciary duty, as the Plan’s investment management and recordkeeping fees have been deemed excessive. Plaintiffs allege that plan fiduciaries failed to review fees of the investment products offered and investigate lower share class options when they were available. Further, the use of some […]Read More
Allstate Target Date Funds Lawsuit
The plaintiff in this case, a former participant in the Allstate 401(k) Savings Plan, claims that plan fiduciaries breached duties under ERISA by continuing to offer “poorly performing target-date funds” – the Northern Trust Focus Funds – within the Plan’s investment menu and as a QDIA. The lawsuit claims that the Plan lost over $65 […]Read More
Nestle Excessive Fee Lawsuit
A participant in the Nestle 401(k) Savings plan has filed a proposed class action lawsuit claiming that Nestle breached fiduciary duties under ERISA, allowing the Plan to pay unreasonably high recordkeeping and administrative fees and managed account fees as well as engaging in self-dealing with respect to plan administration. With regard to the managed account […]Read More