Wal-Mart sued over ‘overpriced’ 401(k) options

Wal-Mart Stores Inc., Bentonville, Ark., is facing a federal class-action suit claiming the company’s $9.5 billion 401(k) plan offered “unreasonably expensive retail funds,” according to court documents. Jeremy Braden filed the original suit in U.S. District Court in Springfield, Mo., claiming plan participants lost $60 million because of unnecessary expenses over the past six years. “The plan has squandered tens of million of dollars of participants' retirement savings to pay for overpriced mutual funds that do not serve the best interest of the plan participants,” the lawsuit said. Funds cited in the filing are AIM International Growth Fund, American EuroPacific Growth Fund, Ariel Fund, Merrill Lynch Equity Index Trust, Davis New York Venture Fund, Franklin Small-Mid-Cap Growth Fund, MFS Growth Stock Fund and PIMCO Total Return Fund. Wal-Mart spokeswoman Daphne Moore said the company is reviewing the case and cannot comment on pending litigation.