A 401(k) plan participant filed a class-action lawsuit against Matthews International Corp., Pittsburgh, its board of directors and pension board, alleging they violated their fiduciary duties in the management of the plan and its investment lineup.
The lawsuit, filed Monday in U.S. District Court in Green Bay, Wis., alleges the company and other defendants breached their fiduciary duties under the Employee Retirement Income Security Act of 1974 by authorizing the 401(k) plan to pay "unreasonably high" fees to the current record keeper Wells Fargo and former record keeper PNC Bank and "failing to objectively and adequately review the plan's investment portfolio with due care to ensure that each investment option was prudent in terms of cost," according to the court filing.
The plaintiff, Deborah Cotter, also alleged the defendants breached their fiduciary duties by offering certain funds in the investment lineup despite identical or similar funds also being available at lower costs or with better performance.
As of Dec. 31, 2018, the Matthews International Corp. 401(k) Plan had $309 million in assets, according to the company's most recent Form 5500 filing.
Paul M. Secunda, partner at Walcheske & Luzi, attorney for the plaintiff, said in a telephone interview that more access to fee and cost information in 401(k) plans in general have allowed these kinds of lawsuits and overall they will "hold plan sponsors, plan administrators and record keepers responsible and accountable, so we plan to hold their feet to the fire until we see these costs and fees further decline."
William D. Wilson, Matthews International spokesman, could not be immediately reached for comment.
