Four former participants in a 401(k) plan offered by ManTech International Corp. sued the company and plan executives for violating their fiduciary duties by, among other things, failing to reduce expenses, monitor investments and choose lower-price shares of investments.
Given the plan's asset size, the fiduciaries "had substantial bargaining power regarding the fees and expenses that were charged against participants' investments," said the complaint, filed May 15 in a U.S. District Court in Richmond, Va.
"Defendants, however, did not try to reduce the plan's expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the plan to ensure it was prudent," said the complaint in Gerken et al. vs. ManTech International Corp. et al.
"Defendants failed to utilize the lowest cost share class for many of the mutual funds within the plan, and failed to consider collective trusts, commingled accounts or separate accounts as alternatives to the mutual funds in the plan, despite their lower fees," the plaintiffs alleged.
A company representative did not respond to a request for comment.
The ManTech International 401(k) Plan, Herndon, Va., had assets of $839.6 million as of Dec. 31, 2018, according to its latest Form 5500.