Cognizant Technology Sued by Ex-Workers Over 401(k) Fees (1)

Cognizant Technology Solutions Corp. was sued Wednesday by five former employees who say the information technology consultant fills its $1.2 billion 401(k) plan with expensive investment options without adequately investigating cheaper alternatives, according to a new New Jersey federal filing.

The employees, led by Mark Milano, say the Cognizant plan fiduciaries allowed substantial plan assets to remain in pricey “branded” MassMutual funds. They allegedly should have swapped these funds for cheaper, “unbranded” funds with identical investments, managers, and risk profiles.

Milano also charges Cognizant with failing to investigate lower cost collective trusts and failing to replace the plan’s many underperforming ...