A participant in a 401(k) plan run by Old Dominion Freight Line Inc. sued the company, alleging violations of ERISA because the plan offered high-priced investments compared with cheaper, identical options available in the marketplace.
"By causing plan participants to pay more for identical investments, defendant failed in its statutory ERISA duty to prudently defray costs of the plan," said the lawsuit filed Nov. 18 in a U.S. District Court in Greensboro, N.C.
"Defendant selected more expensive share classes than identical less expensive share classes of the same investments," said the complaint in Davis vs. Old Dominion Freight Line Inc. "Except for the extra fees, the share classes are/were identical."
The plaintiff is seeking class-action status. "Defendant should have known of the existence and availability of lower-cost share classes," the lawsuit said. "Yet, defendant selected and retained the more expensive share classes on the plan's menu of investment options."
A company representative did not respond to a request for comment.
Old Dominion 401(k) Retirement Plan, Thomasville, N.C., had $2 billion in assets and 24,033 participants as of Dec. 31, 2021, according to the lawsuit.
