A participant in a 401(k) plan run by Generac Power Systems Inc. sued the company and plan fiduciaries alleging violations of ERISA in the management of the plan.
The complaint criticized the defendants for "unreasonably" high fees for record keeping and administration as well as for inadequate review of plan investment choices, in the lawsuit Dereck Case vs. Generac Power Systems Inc. It was filed June 8 in U.S. District Court in Seattle.
The complaint, which seeks class-action status, also alleged that fiduciaries retained in the plan lineup certain investment options that were more expensive and/or worse-performing than similar or identical options in the marketplace.
"Defendants did not engage in a prudent decision-making process," the lawsuit claimed. "These objectively unreasonable (record-keeping) fees and investment selections cannot be justified."
Dave Racine, a company spokesman, said in an email that Generac doesn't comment on pending lawsuits. "Generac is committed to providing employees a comprehensive benefits package," Mr. Racine wrote.
The Generac Power Systems Inc. Employees 401(k) Savings Plan, Waukesha, Wis., had $176 million in assets as of Dec. 31, 2019, according to the latest Form 5500.