Huntington Bancshares Must Face Would-Be Class Suit Over 401(k)

Huntington Bancshares Inc. may be liable under federal benefits law for filling its 401(k) plan with underperforming proprietary mutual funds and paying excessive administrative fees to a subsidiary, the Southern District of Ohio ruled.

Seven participants in Huntington’s 401(k) plan are moving forward with a proposed class action accusing the bank of mismanaging the plan in violation of the Employee Retirement Income Security Act. Judge Michael H. Watson largely denied Huntington’s motion to dismiss Sept. 26, green-lighting challenges to the plan’s affiliated funds, record-keeping fees, and decision to offer a money market fund instead of a stable value option.

Watson ...