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MetLife Sued Over In-House Index Funds in $7.3 Billion 401(k)

July 19, 2021, 8:07 PM

MetLife Group Inc. acts disloyally and imprudently by choosing its own high-cost, proprietary funds as the only index funds offered to participants in its $7.3 billion 401(k) plan, according to a proposed class action filed Monday in Manhattan federal court.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims MetLife mismanages and improperly profits from its employees’ retirement plan by offering its own proprietary index funds instead of cheaper and more precise alternatives from competitors like BlackRock, Northern Trust, State Street, Vanguard, and Fidelity.

“Not only were the MetLife Index Funds more expensive, ...

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