Smith & Nephew Sued by Workers Over 401(k) Fees, Forfeiture Use

Smith & Nephew Inc. is facing a new lawsuit by workers challenging their 401(k) plan’s fees and how the medical technology company handles plan assets forfeited by employees who leave their jobs after short periods.

Smith & Nephew mismanages its $1.1 billion retirement plan by paying annual administrative fees of about $62 per person, when a reasonable fee for these services would be closer to $32 per person, the workers said Thursday in a proposed class complaint. The plan also paid excessive fees for managed account services that don’t add meaningful value, they said.

The lawsuit, filed in the ...