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Anthem Sued Over 401(k) Fees Paid to Vanguard

Jan. 5, 2016, 5:00 AM

A proposed class of Anthem Inc. workers accuse the Indiana-based health insurer of loading its 401(k) plan with high-fee mutual funds and paying excessive fees to the Vanguard entities that service the plan (Bell v. Anthem, Inc., Pension Comm. of ATH Holding Co. LLC, S.D. Ind., 1:15-cv-02062, complaint filed 12/29/15).

The workers fault Anthem for not using the plan’s large size—allegedly more than $5.1 billion in assets—to secure lower fees. They accuse Anthem of selecting high-priced share classes of mutual funds over the lower-cost share classes of identical mutual funds that are “readily available” to plans of...

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