Benefits & Executive Compensation News

Fidelity Sued Over In-House Funds in Its 401(k) Plan

Oct. 10, 2018, 8:22 PM

FMR LLC, the parent company of Fidelity Investments, is the latest financial institution to be sued over the affiliated investment funds in its 401(k) plan.

The proposed class action, filed Oct. 10 in a federal court in Boston, says the company filled its retirement plan “exclusively” with Fidelity-affiliated investments, which allowed the company to earn fees at the expense of workers’ retirement savings. “Almost every nonidentical Fidelity mutual fund” was included in the plan, creating a lineup of hundreds of investments, according to the complaint.

Fidelity’s 401(k) plan had $15 billion in assets in 2016 and between 30,000 and 40,000...

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