Former participants in a 401(k) plan offered by MGM Resorts International sued the company and plan fiduciaries alleging a series of ERISA violations.
The plaintiffs accused fiduciaries of "failing to objectively review the plan's investment menu with due care to insure that each investment option was prudent," said the complaint filed Wednesday in a U.S. District Court in Las Vegas.
The lawsuit, which seeks class action status, criticized fiduciaries for allegedly "maintaining certain funds in the plan despite the availability of identical or similar investment with lower costs and/or better performance histories."
The complaint also accused the defendants "in many instances" of failing to offer lower-cost shares for many mutual funds in the investment lineup "despite their lower fees and materially similar investment objectives."
Debra DeShong, an MGM Resorts spokeswoman, wrote in an email that the company declined to comment on the case of Lucas et al vs. MGM Resorts International et al.
The MGM Resorts 401(k) Savings Plan had assets of $1.63 billion as of Dec. 31, 2018, according to the latest Form 5500.