Koch Industries is being sued for allowing the record keeper of its 401(k) and other defined contribution plans to charge excessive fees, according to a complaint filed in federal court in Atlanta.
The class action, filed July 16 by David Kinder and Tracy Scott, said that Koch Industries breached its fiduciary responsibilities as administrator of the $8.1 billion Koch Companies Defined Contribution Master Trust by failing "to prudently and loyally monitor and control" the expenses incurred by the plans' record keeper, Alight Solutions. Alight is not named in the suit, Kinder et al. vs. Koch Industries Inc. et al.
The complaint further said that Alight charged "up to six times more than what similarly sized plans would have paid for such services," and that these actions cost the plans and their participants "millions of dollars in excessive fees."
Plans governed by the master trust include Georgia-Pacific LLC Hourly 401(k) Plan, Georgia-Pacific LLC 401(k) Retirement Savings Plan, the Koch Industries Inc. Employees' Savings Plan and the Flint Hills Resources Chemicals Salary Deferral Plan.
“In the complaint, the plaintiffs’ attorneys admit that they do not have knowledge of all material facts, that they lack knowledge regarding the specifics of our decision-making processes, and that they have drawn ‘inferences’ for purposes of filing the lawsuit,” Koch Industries spokesman David Dziok said in an emailed statement. “We take these allegations and inferences seriously; we are reviewing the lawsuit and believe it has no merit and we will fight it vigorously.”
John T. Sparks, a partner at the law firm Austin & Sparks PC and attorney for the plaintiffs, could not be immediately reached for comment.
