Allegiant Travel Hit With Class Suit Over 401(k) Plan Fees (1)

Discount airline Allegiant Travel Co. mismanages its $371 million 401(k) plan by paying excessive administrative fees and offering high-cost investment options, according to a proposed class action filed in federal court in Nevada.

Allegiant failed to properly monitor the plan’s recordkeeping and administrative fees, allowing them to grow unchecked as the plan’s asset base grew tenfold over the past decade, plan participant Robert Cevasco alleged in the complaint. The company also allowed its plan recordkeeper, Fidelity Institutional, to earn unfettered interest income on plan contributions and withdrawals during periods in which they’re temporarily held in a clearing account, Cevasco claims. ...