Salesforce.com Workers Score 9th Cir. Revival of 401(k) Fee Suit

Salesforce.com Inc. employees won a major victory in their lawsuit challenging their 401(k) plan fees and investment options, when the Ninth Circuit ruled Friday that their proposed class action can move forward after being improperly dismissed.

The Salesforce workers have viable ERISA claims based on the company’s alleged failure to choose lower cost share classes or collective investment trusts in lieu of the plan’s supposedly high-cost funds, the U.S. Court of Appeals for the Ninth Circuit said.

Salesforce said these more expensive funds benefited the plan by offsetting other costs, but this “alternative explanation” isn’t enough to defeat a motion ...