Evonik Corp. Latest Employer Sued Over 401(k) Fees, Mutual Funds

Two participants in Evonik Corp.'s 401(k) plan filed a proposed class action in the District of New Jersey claiming the plan’s fiduciaries chose excessively expensive investment options without properly investigating cheaper alternatives.

The lawsuit alleges Evonik, the U.S. arm of German specialty chemical company Evonik Industries AG, filled its $1 billion 401(k) plan with expensive mutual funds without considering whether cheaper options like collective trusts or separate accounts could better protect participants’ savings. The plan fiduciaries also failed to select the cheapest share classes of the plan’s mutual funds, needlessly increasing the expenses borne by plan participants, the complaint ...