A participant in the 401(k) plan of Nestle USA Inc., Solon, Ohio, filed a class-action lawsuit alleging the company, its board of directors and numerous officials breached their fiduciary duties in the management of the plan.
The suit, filed Oct. 9 in U.S. District Court in Green Bay, Wis., by Lorie M. Guyes, alleges the company, its board and officials violated their fiduciary duties under the Employee Retirement Income Security Act of 1974 by paying unreasonably high fees for the record keeping and administration of the 401(k) plan and for managed account services.
The lawsuit also alleges the defendants engaged in "self-dealing with regard to the administration of the plan," according to the court filing.
As of Dec. 31, the Nestle 401(k) Savings Plan had $6.3 billion 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 companies like Nestle "will continue to be sued if they do not follow a prudent process for record keeping, for share classes and for managed account services."
Lauren Rubbo, Nestle USA spokeswoman, could not be immediately reached for comment.