Edward Jones Hit With Second ERISA Lawsuit Over 401(k) Fees

Edward D. Jones & Co. breached its fiduciary duties to employees in its 401(k) plan by including mutual fund investments from business partners and affiliates that charged higher fees than competitors, a new lawsuit alleges (Schultz v. Edward D. Jones & Co. L.P., E.D. Mo., 4:16-cv-01762, complaint filed 11/11/16).

The wealth management company maintained revenue-sharing arrangements with mutual fund companies, including American Funds, Goldman Sachs, Invesco and Lord Abbett, so that it could receive a portion of the investment fees charged to its clients in return for recommending their partners products, the complaint said. ...