Four 401(k) plan participants filed a lawsuit against VCA Inc., Los Angeles, alleging the veterinary hospital network and its retirement plan committee breached their ERISA fiduciary duties in the management of the plan.
The lawsuit, filed in U.S. District Court in Los Angeles on Nov. 22, alleges VCA breached its duties under the Employee Retirement Income Security Act of 1974 by failing to monitor plan administrative and record-keeping fees in the VCA Inc. Salary Savings Plan, the court filing said.
The lawsuit alleges that between 2015 and 2020, the plan's fiduciaries failed to "employ prudent processes for ensuring that fees were and remained reasonable," the filing said.
Prudential Financial, the plan's record keeper, was not named as a defendant in the suit.
As of Dec. 31, 2019, the VCA Inc. Salary Savings Plan had $563 million in assets, according to the plan's final Form 5500 filing.
As of July 24, 2020, the plan was merged into the Mars Veterinary Health 401(k) Savings Plan. That plan had $852 million in assets as of Dec. 31, according to its most recent Form 5500 filing.
Mars Inc., McLean, Va., purchased VCA in 2017.
VCA officials and Robert Ahdoot, principal at Ahdoot Wolfson, the plaintiffs' attorney, could not be immediately reached for comment.