Liberty Mutual Must Face Fee Challenge in $7 Billion 401(k) Plan

Participants in Liberty Mutual Group Inc.'s $7 billion 401(k) plan advanced a proposed class action challenging the plan’s fees and investment options, after a Boston federal judge ruled Tuesday that their complaint contained specific factual allegations suggesting mismanagement.

The plan participants, led by Yusuf Ahmed, are moving forward with the entirety of their Employee Retirement Income Security Act lawsuit, which challenges the Liberty Mutual plan’s administrative fees and two plan investment options that were allegedly poor performers. Ahmed’s complaint is supported by specific allegations and comparisons that combine to suggest Liberty Mutual used a flawed decision-making process in managing the ...