Fidelity and Shell Oil Company are targets of the latest lawsuit involving fees in 401(k) plans, according to news reports.
The suit, filed in the Southern District of Texas by four participants in Shell’s 401(k) plan, accuses the oil company of failing to control administrative expenses in the plan and to properly monitor and remove underperforming investments, Bloomberg Law writes.
The suit also accuses Fidelity Investments Institutional Operations, the plan’s record-keeper, of improperly using plan participants’ confidential information to market “non-Plan retail financial products and services,” the January 24 complaint says, according to the news service.
The suit claims breach of fiduciary duty and prohibited transactions in violation of the Employee Retirement Income Security Act, Bloomberg Law writes.
The claimants seek restoration of alleged plan losses, lawyers’ fees, costs and interest, according to the news service. More than 35,000 plan participants and beneficiaries could potentially become part of a class action suit, Bloomberg Law writes.
Shell declined comment to the news service.
The St. Louis-based law firm Schlichter Bogard & Denton LLP is representing the Shell plan participants in the suit, Bloomberg Law writes. That’s the same firm that negotiated the multi-million-dollar Erisa settlement involving the Massachusetts Institute of Technology, among others, according to the news service. MIT was one of more than a dozen companies that last year reached settlements over allegations of 401(k) plan mismanagement.
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