Three participants in Cleveland-based KeyCorp's 401(k) plan have filed a class-action ERISA fiduciary lawsuit against the bank and its trust oversight committee.
The suit, filed on June 4 in U.S. District Court in Cleveland, alleges the bank violated its fiduciary duties under the Employee Retirement Income Security Act of 1974 by causing its participants to "pay excessive record keeping and related administrative expenses" during the class period beginning June 4, 2014, according to the filing.
The lawsuit alleges the bank and its trust oversight committee "failed to properly monitor and control expenses." According to the filing, Alight Solutions has been the plan's record keeper since at least 2009. Alight Solutions is the former Aon Hewitt U.S. DC record-keeping business, which was acquired by Blackstone Group in 2017.
As of Dec. 31, 2018, the KeyCorp 401(k) Savings Plan had $2.6 billion in assets, according to the bank's most recent Form 5500 filing.
Laura Mimura, KeyCorp spokeswoman, said the company does not comment on pending litigation.
Paul J. Lukas, Kai H. Richter and Brock J. Specht, partners at Nicholas Kaster, attorney for the plaintiffs, could not be immediately reached for comment.
