Bloomberg Law
Aug. 10, 2021, 5:07 PM

Amway Parent Must Face Would-Be Class Action Over 401(k) Fees

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Amway parent company Alticor Inc. must face claims that it mismanages its $1.2 billion 401(k) plan by offering bad investments and overpaying on fees, after a federal judge in Michigan allowed the proposed class action to proceed in its entirety.

Amway argued that it improved the plan in recent years by moving to cheaper and better-performing investments and lowering the plan’s annual administrative fees. But retirement plan fiduciaries have an ongoing duty to prudently manage the plan, and Amway can’t use late-made changes to avoid liability for earlier periods of alleged mismanagement, Judge Paul L. Maloney said in an opinion ...

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