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Yanfeng Automotive Latest Employer Sued Over 401(k) Fees (1)

June 23, 2020, 2:18 PMUpdated: June 23, 2020, 5:25 PM

Yanfeng US Automotive Interior System fills its 401(k) plan with expensive, actively managed funds without adequately considering cheaper alternatives or using its large bargaining power to negotiate better deals, according to a proposed class action filed in the Southern District of New York.

The lawsuit, filed Monday by Yanfeng plan participant Jason Dover, claims the company’s 401(k) plan “lost millions of dollars by offering investment options that had similar, if not identical, characteristics to other lower-priced investment options, but had much higher expenses.” According to Dover, Yanfeng’s $340 million plan is “dominated by expensive, actively managed funds,” some of which ...

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