Salesforce.com ‘Apples-to-Oranges’ 401(k) Fee Challenge Fails

Salesforce.com defeated a proposed class action challenging the investments and fees in its $2 billion 401(k) plan when a federal judge in the Northern District of California said the plan participants’ case was based on “apples-to-oranges” comparisons.

Salesforce’s decision to offer actively managed funds instead of cheaper passively managed funds or collective trusts isn’t evidence of fiduciary imprudence, because these investment options have different goals and strategies and can’t be easily compared, Judge Maxine E. Chesney ruled Monday. And the participants’ allegations that “materially similar” passive funds were available are conclusory and insufficient to state a claim under the Employee ...