Eli Lilly Accused of Excessive Fees, Self-Dealing in 401(k) Plan

Eli Lilly & Co. mismanaged its $8.2 billion 401(k) plan by failing to negotiate a better deal on administrative fees and by taking an impermissible cut from plan assets, according to a proposed class action filed in Indiana federal court.

The annual record keeping fees in the Eli Lilly plan averaged $108 per person over the past few years, when a reasonable annual fee for a similarly sized plan would be closer to $30 per person, plan participant Jennifer Probst said in the complaint.

Probst’s lawsuit, filed Tuesday in the US District Court for the Southern District of Indiana, also ...