Quest Diagnostics Sees 401(k) Proposed Class Challenge Advance

Quest Diagnostics Inc. must face a proposed class action challenging the administrative fees and mutual funds in its $3.9 billion 401(k) plan, after a New Jersey federal judge rejected the company’s dismissal bid in an opinion docketed Wednesday.

The complaint was “replete with allegations” that the plan’s funds were underperforming and charging higher-than-necessary fees, said the unpublished decision by Judge Susan D. Wigenton of the U.S. District Court for the District of New Jersey.

Quest plan participants consequently may move forward with the entirety of their Employee Retirement Income Security Act lawsuit, which challenges multiple plan investment options, including a ...