Wesco Distribution 401(k) Fee Challenge Revived by Third Circuit

Wesco Distribution Inc. employees on Thursday convinced the Third Circuit to revive their lawsuit challenging the fees and investment options in the company’s $837 million 401(k) plan.

The complaint against Wesco, which says the company’s retirement plan fees were several times higher than those of similar plans, includes allegations that Wesco failed to negotiate for lower fees and stuck with an asset-based fee structure that allowed costs to rise without a corresponding increase in services.

These allegations are more specific and provide more context than those found viable in the Third Circuit’s 2019 decision in Sweda v. University of Pennsylvania ...