Workers Sue Lennar Corp. Over 401(k) Fees, Stable Value Fund

Homebuilder Lennar Corp. is facing a proposed class action over the administrative fees and stable value fund in its $1.2 billion 401(k) plan, according to a complaint filed Wednesday in Florida federal court.

The plaintiffs, current and former employees of Lennar, accuse the company of failing to use the plan’s large size to negotiate lower recordkeeping fees from Prudential Retirement Insurance & Annuity Co.—a misstep they say cost the plan at least $450,000 per year. They also take issue with the plan’s Prudential stable value fund, which they say performed poorly while allowing Prudential to pocket “wildly excessive compensation.”

The ...