A federal judge in Santa Ana, Calf., has denied a request by Alorica Inc. to dismiss a lawsuit filed by eight former employees who accused the company and its 401(k) plan fiduciaries of eight ERISA violations.
U.S. District Judge John W. Holcomb on Monday rejected a motion to dismiss but provided no comment on the reason.
The plaintiffs' sued in October 2022, seeking class-action status in Baldwin et al. vs. Alorica Inc. et al.
Their allegations include plan executives offering high-cost share classes when lower-cost shares of identical investments were available and offering poor-performing actively managed mutual funds when passively managed funds with identical investment goals did better and cost less.
They also said the plan offered a guaranteed income product that had "unnecessarily high risk and low returns."
Alorica 401(k) Retirement Plan, Irvine, Calif., had $172 million in assets as of Dec. 31, 2021, according to the latest Form 5500.