Trader Joe’s Mishandled Retirement Plan, Workers Say in Lawsuit

Trader Joe’s Co. breached fiduciary duties to retirement plan participants and beneficiaries, current and former workers say in a federal lawsuit to recoup alleged losses.

Even though the 401(k) plan had $1.6 billion in assets at the end of 2018, its managers steered investments into high-fee accounts, costing plan holders, according to the complaint, filed Dec. 30 in the U.S. District Court for the Central District of California.

“Instead of leveraging the Plan’s tremendous bargaining power to benefit participants and beneficiaries, Trader Joe’s chose inappropriate, higher cost mutual fund share classes and caused the Plan to pay unreasonable and excessive ...