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Ex-Cintas Workers Allege 401(k) Mismanagement in New Suit (1)

Dec. 16, 2019, 5:27 PMUpdated: Dec. 16, 2019, 8:08 PM

Two former Cintas Corp. workers accused the corporate apparel company of mismanaging its 401(k) plan by failing to leverage the plan’s large size to get lower fees and inadequately monitoring expenses, according to a class action filed in federal Ohio court.

The uniform maker kept expensive, actively-managed mutual funds in its 401(k) plan without investigating cheaper alternatives, such as institutional share classes, passively-managed funds, or collective trusts, the workers alleged in a complaint filed Dec. 13 in the U.S. District Court for the Southern District of Ohio.

The company’s mismanagement caused the plan to lose “millions of dollars,” according to ...