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Yanfeng Automotive 401(k) Participant Advances Challenge to Fees

Sept. 29, 2021, 6:18 PM

Yanfeng US Automotive Interior System must face class allegations that it mismanaged its $340 million 401(k) plan by filling it with expensive, actively managed funds without adequately considering cheaper alternatives, a Michigan federal judge ruled.

Judge Terrence G. Berg of the U.S. District Court for the Eastern District of Michigan on Tuesday greenlighted Jason Dover’s lawsuit accusing Yanfeng of breaching its fiduciary duty of prudence under the Employee Retirement Income Security Act. Dover is moving forward with claims that Yanfeng wrongly offered more expensive share classes of certain funds when cheaper versions were available, and that the plan’s investment selection ...

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