Discounter 99 Cents Only Stores Sued Over Modest 401(k) Plan

Seven former employees of 99 Cents Only Stores LLC say the discount retailer’s $70 million 401(k) plan is plagued by overly expensive mutual funds and excessive fees paid to service providers, according to a complaint filed Friday in California federal court.

The employees challenge the plan’s annual recordkeeping fees—allegedly more than $90 per person—and the high-cost mutual funds that they say could have been obtained in less expensive share classes. They also accuse the company of failing to investigate and choose cheaper passively managed funds and of operating under a “conflict of interest” in which funds offered by the plan’s ...