October 15, 2019

October 15, 2019

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October 14, 2019

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ERISA Fiduciary Breach for Failure to Monitor Fees Leads to $35 Million Class Action Hit

In the first class action over 401(k) fees to be tried and decided on its merits, a Missouri federal district court ruled in March that manufacturer ABB Inc. breached its Employee Retirement Income Security Act (ERISA) fiduciary duties — and must pay $35.2 million to the plaintiff class for (1) failing to monitor the recordkeeping fees and revenue-sharing payments made to the plan’s trust company, (2) failing to negotiate rebates to offset or reduce the cost of providing administrative services to plan participants, and (3) replacing an actively balanced mutual fund with the trust company’s target date fund that generated more in revenue sharing for the trust company.

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