A class-action lawsuit has been filed against John Hancock Life Insurance Co. (U.S.A.), Boston, alleging it mismanaged its 401(k) plan in violation of ERISA.
The suit, filed in federal court in Massachusetts by lead plaintiff and former plan participant Jennifer Baker on Feb. 27, asserts that John Hancock only provided John Hancock investment funds within the $2 billion Incentive-Investment Plan for John Hancock Employees "despite their poor performance, high costs, and lack of traction among fiduciaries of similarly sized plans."
The lawsuit argues that the choice of funds resulted in the plan losing tens of millions of dollars in investment returns.
The suit also alleges that the firm "failed to monitor or control the plan's administrative expenses … costing the plan millions of dollars in excessive administrative fees."
Jason M. Leviton, a co-founding partner of the law firm Block & Leviton LLP and lead counsel for the plaintiff, could not be immediately reached for comment. A John Hancock spokeswoman declined to comment.
