Russell Investment Sued Over Fund Swap in Caesars 401(k) Plan

May 20, 2021, 8:21 PM

Russell Investment Management LLC mismanaged Caesars Holdings Inc.'s $1.6 billion 401(k) plan by swapping out well-performing funds with its own struggling proprietary funds, spurring more than $100 million in lost returns, according to a proposed class action filed in the District of Nevada.

The lawsuit, filed Wednesday by plan participant Maggie Thomson, claims Russell took control of the Caesars plan’s investment lineup in 2017, while Caesars was going through messy bankruptcy proceedings. Russell transferred all the plan’s assets into its own proprietary funds, many of which had yielded disappointing results and lost other key investors, Thomson claims.

According to Thomson, ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.