Seven Massachusetts Mutual Life Insurance Co. employees have filed a class-action lawsuit against their employer alleging self-dealing and excessive fees in managing the firm's $1 billion 401(k) plan, the MassMutual Thrift Plan.
According to the complaint, the plaintiffs allege that the defendants “selected and retained almost exclusively their own proprietary funds” for the Thrift Plan in order to make a profit. The suit also alleges that the plan “contains unreasonably expensive and imprudent investment options.”
MassMutual spokeswoman Lisa K. Reilly said: “We believe the comprehensive retirement benefits we offer to our participants help them save toward a secure financial future, and we will defend vigorously against these baseless allegations."
Plaintiffs' attorney Jerome J. Schlichter of the law firm Schlichter, Bogard & Denton could be reached for comment at press time.