• Plan Fees and Expenses The Next Wave of Lawsuits Has Begun
  • October 16, 2006
  • Law Firm: Haynes and Boone, LLP - Dallas Office
  • On September 11, 2006, the plaintiffs' bar initiated the next waive of lawsuits against plan fiduciaries relating to the investments made under their qualified retirement plans. A series of class action lawsuits were filed by a single plaintiff's law firm against six major corporations, as sponsors and fiduciaries of their 401(k)/savings plans, and various other fiduciaries of those plans, including in some cases individual members of the corporation's board of directors. The lawsuits complain of the fees and expenses which were charged against the participants' accounts under those plans. The complaints alleged, among other things, that the fiduciaries breached their fiduciary duties by failing to inform themselves and understand the various forms of compensation being paid by the plan, and by failing to disclose to the participants all the fees and expenses being charged against their accounts.