Participants and beneficiaries of the $310 million Vail Resorts 401(k) Retirement Plan filed a lawsuit against Vail Corp., Broomfield, Colo., for allegedly charging excessive fees in violation of ERISA.
The class-action suit filed Monday by chief plaintiff Debra Kurtz in federal court in Durango, Colo., alleges that for at least 18 of the 27 investment options that the plan provided, the managers of those options offered similar alternatives that charged lower fees and achieved higher returns.
However, despite the other options charging lower fees and producing better returns, the plan sponsor allegedly refused to provide alternative share classes as options for participants.
The suit goes on to allege that these fees were excessive when compared with other similar 401(k) plans, and that these fees resulted in lower net returns that participants in similar plans experienced.
"These investment options and unreasonable fees cannot be justified," the suit alleges.
The plaintiffs demand a jury trial.
Vail spokeswoman Marjory Elwell declined to comment. The plaintiffs' attorney, J. Mark Baird from law firm Baird Quinn, could not be immediately reached for comment.
