Prudential Sued Over Affiliated Funds in Employees’ 401(k) Plan

Prudential Insurance Co. of America allegedly fills its 401(k) plan with expensive and poorly performing affiliated funds, a plan participant said in a lawsuit filed in the District of New Jersey.

The proposed class action accuses Prudential of “overpopulating” its retirement plan with proprietary mutual funds offered by Prudential and its affiliates, failing to monitor the funds’ performance, and failing to disclose the amount of administrative fees it earned from the plan. This allowed Prudential to reap “grossly excessive fees” at the expense of its workers’ retirement savings, according to the Nov. 5 complaint.

The lawsuit also challenges several of ...