Koch Industries, the parent of Georgia-Pacific, Infor and other companies, is being sued for allowing the record keeper of its 401(k) and other defined-contribution plans to charge fees that plaintiffs contend are excessive, according to a complaint filed in federal court in Atlanta.
As reported by Pensions & Investments, the class action charges that Koch Industries breached its fiduciary responsibilities as administrator of the $8.1 billion Koch Companies Defined Contribution Master Trust, which serves about 60,000 participants, by failing "to prudently and loyally monitor and control" the expenses incurred by the plans’ record keeper, Alight Solutions. Alight was not named in the lawsuit.
[More: 401(k) lawsuits keep piling up]
The complaint further said that Alight charged “up to six times more than what similarly sized plans would have paid for such services” and that these actions cost the plans and their participants “millions of dollars in excessive fees.”
The plaintiffs, David Kinder and Tracy Scott, are residents of Arkadelphia, Arkansas. One is a participant and the other a former participant in the Georgia-Pacific Hourly Plan.
The financial advice industry has been facing inquiries into its cash sweep programs for years now.
Investor money allegedly went to strip clubs, exotic cars, and landscaping
Procyon adds $415 million in assets under management in New Jersey while Savant picks up a $213 million Southern California planning firm
With a growing number of real estate-rich Baby Boomers aging into retirement, some advisors may be failing to consider all the options available for those clients' assets.
Cornerstone Advisors study reveals compliance bottlenecks stall campaigns weeks after customer opportunities close.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
