Sonic Automotive 401(k) Suit Axed Despite Pro-Worker SCOTUS Case

Sonic Automotive Inc. defeated a proposed class action challenging the fees and investment options in its retirement plans, despite a recent US Supreme Court decision making it easier to challenge 401(k) service provider arrangements.

The lawsuit didn’t include meaningful comparisons to sufficiently similar investment options, and the alleged underperformance of the disputed funds was too minor and too brief to warrant holding Sonic liable under the Employee Retirement Income Security Act, Judge Kenneth D. Bell said in an opinion docketed May 1. He also rejected claims that certain funds should have been offered in cheaper share classes, saying plaintiff Joseph ...