McKinsey & Co. Wants 401(k) Fee Lawsuit Sent to Arbitration

Global management consulting firm McKinsey & Co. wants a proposed class action targeting its retirement plans sent to arbitration.

McKinsey’s retirement plan documents require any disputes over investment losses to go to binding arbitration, the company said in an April 22 motion. The plan investor who filed suit specifically agreed to this arbitration requirement when he submitted his investment elections online, the company said.

The lawsuit claims McKinsey’s retirement plans—which together hold more than $6 billion in assets—are two of the most expensive large defined contribution plans in the country. The plans carry high fees that benefit McKinsey’s in-house investment ...