Benefits/ERISA
Suits Target 401(k) Fees
Posted May 31, 2007, 06:42 am CST
By Debra Cassens Weiss
Several major corporations are facing lawsuits claiming they charged hidden, excessive or high fees to employees participating in 401(k) plans.
Among the companies named as defendants are The Boeing Co., Kraft Foods Inc., Bechtel Group Inc., General Motors Corp., and Radio Shack Corp., according to the National Law Journal.
Schlichter, Bogard & Denton of St. Louis has filed 13 class actions since September against major companies that target fees or revenue-sharing arrangements between the companies and their 401(k) plans.
A claim for excessive fees in 401(k) plans is "like the newest toy in the toy box" for the plaintiffs bar, Gregory Ash, an Overland Park, Kan., lawyer who is helping defend companies in such suits, told the legal newspaper.