AllianceBernstein Beats Suit Over In-House Funds in 401(k) Plan

Asset manager AllianceBernstein LP defeated a proposed class action challenging the affiliated investments in its employees’ 401(k) plan.

The plan participants’ claims of fiduciary disloyalty failed because they didn’t present facts suggesting AllianceBernstein acted to benefit itself, Judge Lewis J. Liman of the US District Court for the Southern District of New York said. The participants said AllianceBernstein put its own funds in the plan in order to “prop up” its investment management business, but Liman wasn’t persuaded, saying in a March 25 opinion that the participants never refuted the company’s contention that it didn’t charge them fees in connection ...