Advantage Solutions Ordered to Defend 401(k) Fee, Fund Challenge

Advantage Solutions must face the bulk of a proposed class action saying its workers’ 401(k) plan paid excessive recordkeeping fees while offering a poorly performing investment option.

The complaint against Advantage plausibly suggests that the company’s annual 401(k) recordkeeping fees—allegedly about $61 per person—were nearly double what many similarly sized plans were paying, Judge André Birotte Jr. said. These claims, along with allegations that 401(k) recordkeeping services are standardized and can be obtained at lower cost through appropriate negotiation, are sufficient to suggest that Advantage breached its fiduciary duties under the Employee Retirement Income Security Act, Birotte said in an ...