A federal judge in Philadelphia dismissed an ERISA complaint against Ricoh USA Inc. by former 401(k) plan participants who claimed the company and its plan fiduciaries failed to control plan costs and investment management costs.
"Plaintiffs fail to plausibly allege the (retirement plans) committee breached its ERISA-imposed fiduciary duty by charging unreasonable record-keeping fees," U.S. District Court Judge Juan R. Sanchez wrote in his Nov. 15 dismissal ruling in Kruchten et al. vs. Ricoh USA Inc. et al.
"Plaintiffs also do not state a failure-to-monitor claim against Ricoh and the board (of directors)," Mr. Sanchez added. The former participants sued Ricoh USA in February 2022, saying the company and its fiduciaries should have used the plan's bargaining power to secure lower fees and expenses.
Although he dismissed the complaint, Mr. Sanchez wrote that plaintiffs could amend their complaint to provide "meaningful benchmarks by which the court can assess the prudency of the defendants' actions."
The Ricoh USA, Inc. Retirement Savings Plan, Exton, Pa., had $2.3 billion in assets as of Dec. 31, 2021, according to its latest Form 5500 filing.