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ADP Inc. Sued Over Fees in 401(k) Plan Covering 114,000 (1)

May 4, 2020, 6:23 PM; Updated: May 4, 2020, 8:15 PM

Human resources and benefits provider ADP Inc. is accused of mismanaging a 401(k) plan covering more than 114,000 people by failing to rein in plan fees and choosing expensive, poorly performing investment options, according to a lawsuit filed Monday in the U.S. District Court for the District of New Jersey.

The lawsuit was filed by McCaffree Financial Corp. on behalf of a proposed class of 5,000 employers that provide retirement benefits to their workers through the ADP TotalSource Retirement Savings Plan. According to McCaffree, ADP mismanaged the $4.4 billion plan by failing to limit administrative expenses, allowing plan service providers...

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