Bloomberg Law
July 7, 2020, 8:32 PM

CDI Corp. Latest Employer Hit in Frenzy of 401(k) Fee Litigation

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Two former employees of Philadelphia-based engineering company CDI Corp. on Tuesday filed a proposed class action alleging the company failed to control expenses in its $263 million 401(k) plan.

The employees say CDI didn’t have a proper system for evaluating the investment options and fees tied to the plan. This lack of oversight led the plan to offer expensive, actively managed funds and retail share classes in lieu of cheaper and better performing alternatives, including institutional share classes and passively managed funds, according to the complaint filed in the U.S. District Court for the Eastern District of Pennsylvania.

The employees ...

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