Voya Scores Win in ERISA Suit Over Robo-Adviser Fees

Voya Financial Inc. and its subsidiaries convinced a federal judge to dismiss a lawsuit by a 401(k) investor who says the company overcharged for investment advice provided by robo-adviser Financial Engines Advisors LLC (Patrico v. Voya Fin., Inc., 2017 BL 212065, S.D.N.Y., No. 1:16-cv-07070-LGS, 6/20/17).

The investor, a participant in Nestle USA Inc.'s 401(k) plan who filed a proposed class action, can’t use the Employee Retirement Income Security Act to challenge Voya’s fees, a federal judge ruled June 20. That’s because Voya wasn’t acting as an ERISA fiduciary when it negotiated the fees for Financial Engines’ advisory ...