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Court Not on Nationwide’s Side in Would-Be 401(k) Class Action

Aug. 27, 2018, 2:22 PM

Nationwide Life Insurance Co. must defend claims that it charged excessive fees for record-keeping and customer services provided to 401(k) plans it administered on behalf of employers.

A federal judge in Ohio Aug. 24 refused to dismiss the lawsuit filed last year by an investor in a 401(k) plan sponsored by law firm Andrus Wagstaff. The investor seeks to represent more than 37,000 plans and 2.4 million individual investors.

The lawsuit targets Nationwide’s practice of charging a flat 1 percent fee for administrative services. This practice allegedly allowed Nationwide to collect fees that were nearly 10 times the median fee...

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