Prevea Clinic Workers’ 401(k) Plan Fee Challenge Inches Forward

A lawsuit challenging the administrative fees in Prevea Clinic Inc.'s 401(k) plan should move forward under the new standard set by the Seventh Circuit, a federal magistrate judge recommended.

The Prevea workers’ latest complaint claims their 401(k) plan’s recordkeeping fees were three times higher than what a well-run plan would have paid, and that recordkeeping services are standardized across the industry, Magistrate Judge Stephen C. Dries said in a July 21 recommendation. These allegations are enough to satisfy the pleading standard set by the Seventh Circuit in its latest ruling on 401(k) fees, Dries said.

The proposed class action ...