Former participants in a 401(k) plan run by Cognizant Technology Solutions U.S. Corp., Teaneck, N.J., have sued the company and fiduciaries alleging a series of ERISA violations.
The plaintiffs accused the defendants of failing to control record-keeping costs, keeping certain investments when similar and/or less expensive options were available, and failing to "objectively and adequately" review the investment plan lineup, according to court documents.
"Their actions were contrary to the actions of a reasonable fiduciary," said the complaint in the case of Milano et al. vs. Cognizant Technology Solutions U.S. Corp., filed Dec. 2 in U.S. District Court in Newark, N.J.
"Defendants' mismanagement of the plan, to the detriment of participants and beneficiaries, constitutes a breach of the fiduciary duties of prudence and loyalty" as outlined in ERISA, said the complaint, which seeks class-action status.
Jodi Sorenson, a Cognizant spokeswoman, wrote in an email that the company doesn't comment on pending litigation.
The Cognizant Technology Solutions 401(k) Savings Plan had $1.6 billion in assets as of Dec. 31, 2019, according to its latest Form 5500.