Current and former members of a Fujitsu 401(k) plan have sued plan executives and Fujitsu's American subsidiary alleging the plan violated its ERISA duties by paying high fees for investment options.
According to the lawsuit, Johnson et al. vs. Fujitsu Technology and Business of America Inc. et al., plan executives “failed to utilize the least expensive share classes for many mutual funds with the plan.”
The lawsuit was filed June 30 in U.S. District Court in San Francisco. Plaintiffs are seeking class-action status.
Plan executives paid record-keeping expenses “far in excess of what a prudent fiduciary would pay for those same services,” the complaint said. “Defendants systematically failed to manage the plan's investments in a cost-conscious manner.”
The complaint also argued that the plan had offered an “imprudently” designed and implemented a custom target-date fund series. Until July 31, 2015, the lawsuit said defendant Shepherd Kaplan LLC, an investment adviser, was a “named investment fiduciary” that designed the custom target-date series. The firm was replaced as “named investment fiduciary” by Callan Associates, the lawsuit said. In March, the Fujitsu 401(k) plan replaced the target-date series with a new series designed by Callan, the lawsuit added.
The Fujitsu Group Defined Contribution and 401(k) Plan had $1.33 billion in assets at the end of 2014, according to a Form 5500 filing with the Department of Labor.
Representatives from Fujitsu could not be reached by press time.