Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

KeyCorp Is Third Employer Sued Over 401(k) Fees in Past Week

June 5, 2020, 4:04 PM

KeyCorp, the parent company of Ohio’s KeyBank, was hit with a proposed class action claiming it allowed administrative expenses in its 401(k) plan to spiral out of control.

The lawsuit, filed Thursday in the U.S. District Court for the Southern District of Ohio, accuses KeyCorp of failing to use the $2.9 billion plan’s large size as leverage to obtain a better deal on record keeping services. Plan participant Gregory Stark claims the plan paid annual record keeping fees of about $63 per person, when a reasonable fee would have been no more than $40 per person.

This failure led ...