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Cumulus Media Sued Over 401(k) Plan’s Fees, Investment Funds

Feb. 27, 2020, 5:34 PM

Cumulus Media Inc. is accused of draining its workers’ retirement savings by filling its 401(k) plan with expensive versions of investment funds that could have been obtained at a lower cost, according to a lawsuit filed in federal court in Atlanta.

The proposed class action, filed Wednesday by plan participant Cara Chiappa, claims Cumulus allowed high-fee, actively managed funds to remain in the plan without adequately investigating cheaper alternatives, including less expensive share classes, passive funds, and alternative vehicles like collective trusts and separate accounts. Cumulus’ 2019 revamp of the plan, which resulted in lower overall expenses, was “far too...

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