Mercedes-Benz Sued Over Fees in $984 Million Retirement Plan

Mercedes-Benz US International Inc. was sued in Alabama federal court by two participants in its $984 million retirement plan who say the automaker failed to use the plan’s substantial bargaining power to get a better deal on administrative fees.

The complaint, docketed Tuesday in the U.S. District Court for the Northern District of Alabama, claims the plan paid between $239 and $567 per participant, per year, in administrative fees, when a reasonable annual fee would have been about $53 per participant. These excessive fees reduced participants’ 401(k) account balances and “caused them significantly diminished investment returns,” according to the lawsuit. ...