ADP Beats Challenge to 114,000-Person 401(k) on Standing Grounds

Human resources and benefits provider ADP Inc. defeated a lawsuit claiming it mismanages a 401(k) plan covering employees across 5,000 companies by convincing a New Jersey federal judge that the company that sued lacks standing to press the claims.

McCaffree Financial Corp., which allows its employees to invest in the ADP TotalSource Retirement Savings Plan, didn’t “allege a single fact” showing that it’s a plan fiduciary for purposes of establishing standing to sue, Judge Esther Salas of the U.S. District Court for the District of New Jersey said Thursday. McCaffree’s complaint didn’t identify any authority or control it has over ...