Pfizer 401(k) Plan Fee Lawsuit Dismissed for Faulty Comparisons

Pfizer Inc. defeated a proposed class action challenging the administrative fees in its $21 billion 401(k) plan when a federal judge said the lawsuit was based on inappropriate comparisons to dissimilar plans.

Pfizer’s plan paid excessive annual recordkeeping fees of $52 per person, when a reasonable fee for these services would be closer to $28 per person, according to the lawsuit.

But the case is based on “apples-to-oranges” comparisons to other plans with different participant populations and asset bases, and it relies on data that undercuts its central theory that larger plans pay lower recordkeeping fees than smaller plans, Judge ...