Embry-Riddle Aeronautical Worker Advances 401(k) Fee Challenge

An employee of Embry-Riddle Aeronautical University Inc. is moving forward with a proposed class action claiming the private aviation school mismanages its $500 million retirement plan.

Embry-Riddle must defend claims that its retirement plan charged excessive administrative fees of at least $160 per person, per year, Judge Paul G. Byron of the US District Court for the Middle District of Florida said Wednesday. These fees increased every year between 2015 and 2020 and are significantly higher than the $30 annual fee a well-managed plan could have obtained, Embry-Riddle employee Guillermina Lopez alleged in the lawsuit.

Byron found these claims persuasive. ...