Recently, there has been an increase in cases where a current or former employee sues their employer for mismanaging the company’s 401(k) plans. The allegations have ranged from excessive fees to improper revenue sharing to poor performing or untested investment options. Many of these cases involve an employer who doubles as the investment manager for the mutual funds that are offered as a 401(k) investment option.
An example of this would be a recent complaint filed against Allianz Asset Management of America. According to the complaint, the participants of the Allianz Asset Management of America 401(k) Savings and Retirement Plan claim that the plan fiduciaries violated the Employee Retirement Income Security Act of 1974 by populating the 401(k) plans’ investment menu with high-priced proprietary funds. To read more about the complaint against Allianz, click here.
If you believe that your employer is mismanaging your 401(k) plan, it is imperative to speak with an attorney experienced in 401(k) and fiduciary mismanagement lawsuits.