Bessemer Trust Sued Over In-House Mutual Funds in Worker 401(k)

Financial services company Bessemer Trust Co. is accused of enriching itself through its employees’ 401(k) plan by filling it with expensive and poorly performing mutual funds managed by a subsidiary, according to a federal lawsuit filed Wednesday in New Jersey.

The proposed class action, filed in the U.S. District Court for the District of New Jersey, accuses Bessemer of improperly using its 401(k) plan as an opportunity to promote its Old Westbury mutual fund business and maximize its own profits at the expense of workers’ retirement savings. These Old Westbury funds carry excessive fees, are disfavored among other large retirement ...