Equitable Financial Sued Over 401(k) Fees, Stable Value Fund

Equitable Financial Life Insurance Co. was hit with a proposed class action claiming the $2.4 billion retirement plan covering its workforce is plagued by excessive fees and a shoddy stable value fund producing negligible returns.

Equitable, formerly known as AXA Equitable Life Insurance Co., offers workers a stable value fund that provides significantly lower rates of return than similar investments while exposing workers to greater risk, a former employee said in a complaint filed Monday in the US District Court for the District of New Jersey. Equitable’s decision to offer this fund improperly benefited the insurance companies that offer the ...