Gilbane Hit With Class Suit Over 401(k) Fees, Target-Date Funds

Gilbane Inc. was sued Friday by a former employee who says the real estate and construction firm’s 401(k) plan charges excessive administrative fees while offering poorly performing target-date funds.

Participants in Gilbane’s 401(k) plan paid annual recordkeeping fees of $59 per person when participants in similar plans paid about $42, plaintiff Todd Szopo said in a proposed class complaint filed in the US District Court for the District of Rhode Island. The Gilbane plan also invested about one-quarter of its assets in target-date funds from non-party American Century Investments that “chronically underperformed” similar options from other companies, Szopo alleged.

• Szopo ...