Salesforce.com Latest Employer Sued Over 401(k) Plan Fees

Three former salesforce.com Inc. employees filed a proposed class action challenging the company’s 401(k) plan, telling a federal judge in California that the plan’s fiduciaries kept offering expensive funds without properly investigating cheaper and better-performing alternatives.

The complaint, filed Wednesday in the U.S. District Court for the Northern District of California, claims salesforce and top executives failed to investigate and choose cost-effective investment options for the company’s 401(k) plan. The plan offered several actively-managed funds that carried “grossly excessive fees” compared with superior alternatives like passive funds, cheaper share classes, and collective trusts, according to the complaint.

“There is no ...