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Ohio’s KeyCorp Must Face Bulk of Retirement Plan Fee Lawsuit

May 4, 2021, 3:55 PM

Participants in KeyCorp’s $2.9 billion 401(k) plan are moving forward with part of their proposed class action accusing plan fiduciaries of failing to use the plan’s large size as leverage to negotiate lower fees, according to a Tuesday ruling by a federal judge in Cleveland.

KeyCorp, the parent company of Ohio’s KeyBank, must face claims that it acted imprudently under the Employee Retirement Income Security Act by allowing the plan’s record-keeping and managed account fees to spiral out of control, Judge Pamela A. Barker of the U.S. District Court for the Northern District of Ohio held. But Barker dismissed claims...

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