Former participants in a 401(k) plan for iHeart Communications Inc., Dallas, sued the company and its fiduciaries, saying they violated ERISA rules in managing the plan.
The plaintiffs accused the defendants of "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 a complaint filed Aug. 19 in federal District Court in Dallas.
The complaint also said that fiduciaries kept "certain funds in the plan despite the availability of identical or similar investment options with lower costs and/or better performance histories," the complaint said.
In seeking class-action status, the plaintiffs argued that "In many instances, defendants failed to utilize the lowest cost share class for many of the mutual funds within the plan."
They also contended that the defendants "failed to consider certain collective trusts available during the class period as alternatives to the mutual funds in the plan despite their lower fees and materially similar investment objectives," according to the complaint in Walker and Henshaw vs. iHeart Communications Inc. et al.
A company representative couldn't be immediately reached for comment.
The iHeart Media Inc. 401K Savings Plan, Dallas, had assets of $1.02 billion as of Dec. 31, 2018, according to the latest Form 5500.
