FirstGroup, Aon Hewitt Must Face Challenge to 401(k) Fund Swap

FirstGroup America Inc. and Aon Hewitt Investment Consulting Inc. must face the bulk of a proposed class action challenging a 2013 overhaul of the school bus company’s 401(k) plan that swapped 95% of the plan’s investments for untested Aon funds that performed poorly, a federal judge in the Southern District of Ohio ruled.

Jeffrey McGinnes, who wants to represent a class of about 13,000 participants in the FirstGroup plan, is moving forward with claims of fiduciary disloyalty and imprudence under the Employee Retirement Income Security Act. McGinnes adequately alleged that FirstGroup upended the “strong performance” of its 401(k) plan without ...