Reyes Holdings Unable to Beat 401(k) Fee Class Action Lawsuit

Reyes Holdings LLC unsuccessfully tried to dismiss a proposed class action alleging the food and beverage distributor and its fiduciaries unlawfully mismanaged its 401(k) plan.

The former plan participants plausibly alleged that Reyes Holdings violated the Employee Retirement Investment Security Act by allowing excessive fees and maintaining underperforming investments, Judge John F. Kness said Tuesday. The US District Court for the Northern District of Illinois denied Reyes’ motion to dismiss the lawsuit.

“These allegations, although thin, are enough to meet the plausibility standard at the pleading stage,” Kness said. “And they are sufficient to infer reasonably that the comparator funds ...