Amway Parent Joins List of Employers Sued Over 401(k) Fees (1)

Amway parent company Alticor Inc. mismanages its $1.2 billion 401(k) plan by offering expensive and underperforming investment options and overpaying for administrative fees, three former employees allege in a proposed class action filed in the Western District of Michigan.

Amway is accused of violating the Employee Retirement Income Security Act by failing to negotiate for lower 401(k) administrative fees, failing to investigate cheaper investment options like collective trusts, and failing to take advantage of the lowest cost share classes for which its plan was eligible. The plan also offered at least five funds that underperformed their benchmarks while charging above-average ...