A federal District Court judge in Alexandria, Va., dismissed an ERISA complaint against Capital One Financial Corp. by a 401(k) plan participant who accused the company and plan fiduciaries of failing to control record-keeping costs and offering some investment options that cost more than comparable options in similar-size plans.
The allegation of excessive record-keeping fees was dismissed due to the plaintiff's "failure to state a claim" in accordance with ERISA rules, wrote U.S. District Judge Anthony J. Trenga in a May 27 ruling in the case of Morales vs. Capital One Financial Corp. The judge dismissed the complaint after holding a hearing on May 27.
Mr. Trenga dismissed the allegation about investment options, noting that the plaintiff lacked legal standing because he didn't invest in the three options cited in his complaint. He also dismissed a claim that defendants failed to monitor fiduciaries.
The judge said the plaintiff could amend the lawsuit on the record-keeping and fiduciary monitoring allegations within 14 days of his ruling.
Mr. Morales filed the suit on Dec. 31, seeking class-action status.
The Capital One Financial Corporation Associate Savings Plan, McLean, Va., had $7.9 billion in assets as of Dec. 31, 2020, according to the latest Form 5500.
