Participants in a 401(k) plan run by Northeast Grocery Inc. have sued the company and plan fiduciaries, alleging several ERISA violations.
Plaintiffs accused the defendants of failing to monitor and control record-keeping costs, failing to offer less expensive share classes and failing to provide better-performing investments, said the complaint filed Jan. 17 in a U.S. District Court in Utica, N.Y.
Fiduciaries "repeatedly failed to monitor, explore and consider the lowest share class options for investments in the plan," said the lawsuit — Collins et al. vs. Northeast Grocery Inc. et al.
Plaintiffs also said fiduciaries should have removed a Fidelity Investments' target-date series because cheaper, better-performing target-date series were available in the marketplace. Fidelity is not a defendant.
The lawsuit, which seeks class-action status, complained that plan executives didn't monitor record-keeping costs, and it alleged that the fees paid to Fidelity "were far more significant than recognized reasonable rates for similarly sized plans."
Mona Golub, a company spokeswoman, wrote in an email that Northeast Grocery hasn't yet been served with the lawsuit, adding the company doesn't comment on pending litigation.
Northeast Grocery represents the merger of two grocery companies, Tops Markets and Price Chopper/Market 32, which closed in November 2021. The retirement plans for the two companies were merged to create the Northeast Grocery Inc. 401(k) Plan, Schenectady, N.Y.