Trader Joe’s Case Is Latest 401(k) Fee Suit Revived by 9th Cir.

Trader Joe’s Co. workers convinced the Ninth Circuit on Friday to revive their lawsuit over the grocer’s retirement plan, marking the second time this month the appeals court has sided with workers challenging their 401(k) plan fees.

The employees plausibly alleged that their plan paid more than $30 million in extra fees because of the company’s decision to offer more expensive retail share class mutual funds, the U.S. Court of Appeals for the Ninth Circuit said. Trader Joe’s explanation for the more expensive funds—that these extra fees helped offset the plan’s administrative costs—is “unavailing at the pleading stage,” the court ...