Four former employees of Insurance Services Office Inc. have sued the company and its fiduciaries alleging ERISA violations in the management of a 401(k) plan.
"In many instances, defendants failed to utilize the lowest cost share class for many of the mutual funds within the plan," said the complaint filed Sept. 24 in a U.S. District Court in Newark, N.J., seeking class-action status.
The defendants "failed to consider certain collective trusts as alternatives to the mutual funds in the plan, despite their lower fees and materially similar investment objectives," said the complaint in the case of Peterson et al. vs. Insurance Services Office Inc. et al.
"We don't comment on matters involving litigation, said Joseph Madden, a spokesman for Verisk Analytics Inc., the parent of Insurance Services Office, in an email.
The complaint also argued that the defendants failed to "objectively and adequately review the plan's investment portfolio with due care to ensure that each investment option was prudent."
The ISO 401(k) Savings and Employee Stock Ownership Plan, Jersey City, N.J., had assets of $1.54 billion as of Dec. 31, 2018, according to the latest Form 5500.