‘Excessive’ 401(k) fee lawsuit ends with $13.5 million settlement
Here’s an example of just how costly it can be when workers decide you’re not doing everything in your power to avoid paying excessive 401(k) fees.
Wal-Mart Stores and Merrill Lynch (the company’s retirement plan provider) just agreed to settle a class-action lawsuit for $13.5 million. The suit claimed the world’s largest private employer didn’t do enough to negotiate lower 401(k) fees.
The lawsuit dates back to 2008, when a Missouri Wal-Mart worker accused the company – known for using size to get the lowest possible prices from its suppliers – of failing to negotiate lower fees for the mutual funds in its 401(k) plan. According to the suit, Wal-Mart offered just 10 investment options, most of which carried “retail” – a.k.a, high – fees.
While the company admitted no wrongdoing, the majority of its settlement will go toward reducing future 401(k) fees.
Merrill Lynch wasn’t initially named in the suit. However, during the trial, the firm was charged with receiving kickbacks from mutual fund companies in exchange for allowing them to be in the plan.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
As employers finalize their 2026 budgets, rising healthcare costs are forcing tougher decisions in financial planning and employee benefits...
Finance rarely sees jury duty or bereavement as risk. They’re payroll line items. Until courts link them to USERRA military leave –...
Layoffs, inflation, AI … these are just some of the factors making employees feel more stressed about their jobs and career future. S...
Employee experience – including employee mental health – has become a higher priority for many organizations, according to rese...
A new proposed rule from the Department of Labor’s Employee Benefits Security Administration outlines how 401(k) fiduciaries must assess ...
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
