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Auto Part Maker GKN Sued Over 401(k) Fees, Investment Platform

Oct. 20, 2021, 7:10 PM

Auto part maker GKN North America Services Inc. mismanaged its $895 million 401(k) plan by using an asset allocation service that funneled workers’ retirement savings into overpriced and conflicted funds, a proposed class action filed in Michigan federal court alleges.

Jeffrey Parker’s lawsuit, filed Tuesday in the U.S. District Court for the Eastern District of Michigan, challenges the plan’s reliance on the GoalMaker asset allocation tool from Prudential Insurance Co., which isn’t named as a defendant. Parker says the tool “disfavored the reliable, low-cost index funds in the Plan’s investment menu” and instead directed workers’ retirement savings into “overpriced proprietary ...

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