USI Insurance Sued Over Alleged Self-Dealing in 401(k) Plan

USI Insurance Services LLC improperly profits off its $848 million 401(k) plan by hiring an in-house consulting group to provide plan administrative services at an excessive price, according to a proposed class action filed in the U.S. District Court for the Southern District of New York.

The lawsuit, filed Tuesday on behalf of a proposed class of about 9,867 plan participants, claims the subsidiary USI hired to perform administrative services for the plan charged annual fees that ranged between $81 and $154 per participant, when a reasonable annual fee would have been about $42 per participant. These excessive fees “resulted ...