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Fidelity Agrees to Class Status in Suit Over 401(k) Fees

May 3, 2019, 2:42 PM

FMR LLC, the parent company of Fidelity Investments, agreed May 2 to class certification of a suit challenging the use of in-house mutual funds in the company’s 401(k) plan.

The class covers thousands of individuals who participated in Fidelity’s retirement plan since 2014, when Fidelity paid $12 million to settle two proposed class actions involving its retirement plan—one of which targeted the decision to offer affiliated investment products.

A growing number of retirement plan sponsors facing lawsuits claiming retirement plan mismanagement have consented to class status recently.

The workers allege the company violated the Employee Retirement Income Security Act by...

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