A federal judge rejected a class-action lawsuit brought by participants in Kraft Foods Global Inc.'s 401(k) retirement plans, denying their claims that fiduciaries overpaid for investment management fees and made inherently imprudent investments.
U.S. District Court Judge Sidney I. Schenkier, Chicago, said there is “no triable claim that defendants breached their fiduciary duty with respect to the maintenance of a unitized (company stock fund) or disclosures about it.”
“Furthermore, at all times during the relevant period, participants in the plan had the opportunity to invest in at least seven other investment funds if they felt that the (company stock funds) were too risky or the expenses associated with them were too high,” Mr. Schenkier said.
Neither a Kraft spokesman nor plaintiff attorney Jerome J. Schlichter, of the law firm Schlichter, Bogard & Denton, could be reached for comment.