A 401(k) plan participant filed a class-action lawsuit against Plexus Corp., Neenah, Wis., saying the company and related defendants breached their fiduciary duties in the investment management of its 401(k) plan.
The lawsuit, filed Tuesday in U.S. District Court in Green Bay, Wis., said the company has paid unreasonably high record keeping fees, failed to objectively review the plan's investment options to make sure each option was prudent, and maintained funds in the plan despite the availability of identical or similar options that had lower costs or better performance histories, according to the court filing.
The plaintiff, Stephanie O'Driscoll, filed the lawsuit alleging the breach of fiduciary duties under the Employee Retirement Income Security Act of 1974 on behalf of a class for a period beginning July 14, 2014 and ending with the date of judgment, according to the filing. The record keepers cited in the filing are current record keeper T. Rowe Price Group and former record keeper MassMutual Financial.
Paul M. Secunda, partner at Walcheske & Luzi, attorney for the plaintiff, said in a telephone interview Wednesday regarding a similar lawsuit against Matthews International Corp. that more access to fee and cost information in 401(k) plans in general have allowed these kinds of lawsuits and overall they will "hold plan sponsors, plan administrators and record keepers responsible and accountable, so we plan to hold their feet to the fire until we see these costs and fees further decline."
Mr. Secunda did not have further comment regarding the Plexus lawsuit.
Plexus spokeswoman Heather Beresford said the company's policy is not to comment on active litigation.
As of Dec. 31, the Plexus Corp. 401(k) Retirement Plan had $419 million in assets, according to the company's most recent 11-K filing with the SEC.