Nordstrom Workers’ 401(k) Fee, Forfeiture Challenge Falls Flat

Nordstrom Inc. defeated a proposed class action by workers who challenged the fees associated with the retailer’s retirement plan and how it opts to use 401(k) money forfeited by departing workers.

The workers’ allegations of high 401(k) recordkeeping fees are “contradictory and incoherent” and can’t support a claim for violations of the Employee Retirement Income Security Act, Judge Thomas S. Zilly said. They inconsistently allege that bundled 401(k) recordkeeping services are “fungible and commoditized” while arguing that the Nordstrom plan’s recordkeeper didn’t operate within industry standards, and their comparisons to other plans that supposedly paid less are marred by incorrect ...