Benefits & Executive Compensation News

AutoZone Hit With Class Suit Over Prudential Funds in 401(k)

Nov. 14, 2019, 2:55 PM

Two participants in AutoZone Inc.'s 401(k) plan say the company funneled their retirement savings into “shamelessly overpriced” mutual funds that paid kickbacks to Prudential Insurance Co., according to a class action complaint filed in the Western District of Tennessee.

The lawsuit challenges AutoZone’s decision to offer Prudential’s “GoalMaker” investment platform, which is designed to diversify and rebalance investors’ portfolios over time. The participants say the platform forced them into expensive Prudential funds and “brazenly excluded” reliable, low-cost index funds offered by “reputable providers that did not pay kickbacks to Prudential.”

This cost participants more than $60 million in lost retirement...

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