Aug 16 (Reuters) – Columbia University was accused on Tuesday of mismanaging its retirement plan in a federal civil lawsuit that alleges $100 million in damages.
The complaint says the Ivy League university based in New York retained expensive and poor-performing investment options that consistently underperformed their benchmarks.
“This caused its (retirement) plans and their participants to suffer hundreds of millions of dollars in losses of retirement savings,” said law firm Sanford Heisler LLP, which filed the complaint in U.S. District Court in Manhattan. “As a result, the University’s 401(k) plan included $4.6 billion of investment options that were primarily poor to mediocre performers.”
The university was not immediately available to comment.
The plaintiff in the case is an unnamed faculty member at Columbia who is suing on behalf of herself and 27,000 current and former Columbia employees, and is seeking class action status for the case.
(Reporting by Tim McLaughlin; Editing by Jonathan Oatis)