Magna International Loses Bid to Toss 401(k) Fee Challenge Suit

Four participants in Magna International of America’s $1.6 billion 401(k) plan are moving forward with a proposed class action challenging the plan’s fees and investment options, according to an Eastern District of Michigan ruling.

The participants allege numerous wrongdoings by plan fiduciaries that, when considered together, state claims for imprudent and disloyal plan management under the Employee Retirement Income Security Act, Judge Nancy G. Edmunds of the U.S. District Court for the Eastern District of Michigan ruled Wednesday.

The participants, led by Melvin Davis, claim the plan charges excessive administrative fees and offers high-cost share classes of certain investment options ...