Deutsche Bank Can’t Shake 401(k) Fee Lawsuit

A lawsuit accusing Deutsche Bank of stuffing its 401(k) plan with high-fee, in-house funds is moving forward after a federal judge largely denied the banking giant’s motion to dismiss (Moreno v. Deutsche Bank Ams. Holding Corp., 2016 BL 342731, S.D.N.Y., No. 1:15-cv-09936-LGS, 10/13/16).

The suit, filed on behalf of a proposed class of about 20,000 employees, claims Deutsche Bank directed more than $300 million of its workers’ retirement savings toward an in-house index fund that carried fees 11 times higher than a comparable fund offered by Vanguard, with those fees going “directly into Deutsche Bank’s pocket.” In allowing ...