Former Trader Joe’s Co. employees filed suit Tuesday, saying the grocer’s retirement plan was overinvested in a single fund that charged needlessly high fees.
About 70% of the Trader Joe’s 401(k) plan—nearly $2 billion—was invested in the American Funds American Balanced Fund R4 until 2021, even though significantly cheaper versions of this investment were available, workers said in the complaint. Trader Joe’s cost the plan millions of dollars and breached its fiduciary duties under the Employee Retirement Income Security Act by failing to swap the R4 share class of this fund for the less expensive R6 share class or ...
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