Former participants in a 401(k) plan offered by Aegis Media Americas have sued the company and its fiduciaries for violating ERISA by not reducing reduce costs, not providing the lowest-price share classes and failing to "objectively and adequately" review the plan's investment menu.
"Defendants failed to utilize the lowest cost share class for many of the mutual funds within the plan, and failed to consider collective trusts, commingled accounts or separate accounts as alternatives to the mutual funds in the plan, despite their lower fees," said the complaint, filed May 8 in a U.S. District Court in New York.
"At some point during 2018, over four years into the class period, defendants made changes to certain plan investment options, some of which are the subject of this lawsuit," said the complaint, which is seeking class-action status for the period running from May 8, 2014 through Dec. 31, 2018.
"These changes were far too little and too late as the damages suffered by plan participants to that point had already been baked in," said the complaint in the case of Kennedy et al. vs. Aegis Media Americas Inc. et al. "There is no reason to not have implemented these changes by the start of the class period."
Representatives of Aegis did not respond to requests for comment.
The BenefitsPlus 401(k) Profit Sharing Plan, New York, had assets of $541.5 million for the year ended Dec. 31, 2018, according to the latest Form 5500 filing.