• Plan Sponsors Impacted by Hidden 401(k) Fee Litigation
  • October 29, 2007 | Author: Jeffrey D. Mamorsky
  • Law Firms: Greenberg Traurig, LLP - New York Office; Greenberg Traurig, LLP - Miami Office
  • Corporate governance events in the financial services industry over the last few years have caused employer plan sponsors to pay more attention to "transparency" or full disclosure and explanation of fees charged by plan service providers. This is now at the top of the priority list at the U.S. Department of Labor (DOL), as well as a new favorite subject of the plaintiff class action bar who have now brought more than 14 major lawsuits accusing Fortune 100 companies and members of their boards of directors and senior officers of violating the Employee Retirement Income Security Act (ERISA) of 1974, as amended by allowing their employees to be overcharged by their 401(k) plan vendors for investment management and administration services. A review of recent cases in this area is examined below.