Nestlé USA Sued Over 401(k) Plan Fees, Alleged Self-Dealing

Nestlé USA Inc. mismanaged its $4.2 billion 401(k) plan by authorizing excessive administrative fees and taking an improper cut of the plan’s assets, according to a proposed class action filed in the U.S. District Court for the Eastern District of Wisconsin.

The Nestlé plan, which provides retirement benefits to nearly 40,000 people, paid millions of dollars in excessive fees to third-party vendors providing record keeping and managed account services, plan participant Lorie Guyes alleged in an Oct. 9 complaint. Nestlé also took more than $2.5 million from the plan as an unwarranted administrative fee for itself, in violation of the ...