Benefits & Executive Compensation News

Nationwide, Andrus Wagstaff Beat 401(k) Fee Defendant Class Bid

Sept. 20, 2019, 2:29 PM

Nationwide Life Insurance Co. and law firm Andrus Wagstaff PC convinced the Southern District of Ohio to deny certification of both plaintiff and defendant classes in an investor lawsuit challenging 401(k) plan fees.

The lawsuit was filed by Theresa Brown, a participant in Andrus’s plan, on behalf of a proposed class of more than 250,000 participants in small plans serviced by Nationwide.

Brown claims Nationwide’s practice of charging a flat, 1% fee for administrative services allowed the company to collect fees that were nearly 10 times the median fee throughout the industry.

Brown, in addition to a plaintiff class, also...

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