Costco Hit With Proposed Class Suit Over 401(k) Plan Fees (1)

June 23, 2020, 7:19 PMUpdated: June 23, 2020, 9:38 PM

A participant in Costco Wholesale Corp.‘s $15 billion 401(k) plan filed a proposed class action in Wisconsin federal court on Tuesday, claiming the plan offers expensive, actively managed funds and carries excessive administrative fees.

Dustin Soulek’s lawsuit, filed in the U.S. District Court for the Eastern District of Wisconsin, claims Costco failed to establish a viable method for evaluating plan expenses and allowed the plan to offer a lineup of expensive mutual funds that excluded many low-cost index funds. Plan fiduciaries also failed to use the plan’s large size to negotiate a better deal on administrative fees, which ate ...

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