Two former employees filed a class-action lawsuit against CDI Corp., Philadelphia, saying the company violated its fiduciary duties in the selection of investment options for its 401(k) plan.
The suit, filed Tuesday in U.S. District Court in Philadelphia, said the company, its board of directors and its 401(k) savings plan committee violated the Employee Retirement Income Security Act of 1974 by failing to ensure each investment option offered in the plan is prudent, and that fees and expenses were reasonable.
In the court filing, the plaintiffs said the company and other defendants breached their fiduciary duties by "selecting more expensive share classes instead of the lowest-cost institutional shares" of those same funds, which include funds managed by BlackRock, Capital Group, Invesco, J.P. Morgan Asset Management and others.
As of Dec. 31, 2018, the CDI Corp. 401(k) Savings Plan had $262 million in assets, according to the company's most recent Form 5500 filing.
Officials at CDI Corp., and Marc H. Edelson and Eric Lechtzin, partners at Edelson Lechtzin, attorney for the plaintiffs, could not be immediately reached for further information.