St. Louis company to represent 120,000 plaintiffs in ADP class-action lawsuit

A local law firm has recently filed two cases on behalf of over 200,000 employees regarding the management of their retirement plans. The lawsuits allege that the companies involved breached their fiduciary duties by offering poorly performing investments and charging excessive fees that eroded the employees’ retirement savings over time.

The first case focuses on a company that allegedly failed to monitor and remove underperforming investments from its 401(k) plan. The lawsuit claims that these investments consistently underperformed compared to other options available in the market, resulting in significant losses for employees who invested in them. Additionally, the company is accused of charging excessive fees for managing the retirement plan, further reducing the employees’ returns.

The second case involves a different company that is accused of offering its employees a limited selection of high-cost funds in their 401(k) plan. The lawsuit alleges that these funds carried high expense ratios, meaning that employees paid more in fees to invest in them compared to similar funds with lower expenses. As a result, employees who participated in the plan saw their retirement savings diminish due to the inflated costs associated with these investments.

Both lawsuits argue that the companies breached their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by failing to act in the best interests of their employees when managing the retirement plans. The plaintiffs seek damages for the losses incurred as a result of the companies’ alleged misconduct and are pushing for reforms to the retirement plans to ensure better oversight and management in the future.

Retirement plans play a crucial role in helping employees save for their futures and provide financial security in their later years. When companies mishandle these plans by offering subpar investments or charging excessive fees, it can have devastating consequences for employees who rely on these funds for their retirement. By holding these companies accountable for their actions, the lawsuits aim to protect the rights and financial interests of the thousands of employees affected by their alleged misconduct.

Overall, these cases shed light on the importance of proper management and oversight of retirement plans to safeguard the savings and financial well-being of employees. By addressing the alleged breaches of fiduciary duties in these lawsuits, the hope is to bring about positive changes that will benefit not only the current employees involved but also future generations of workers who rely on their company-sponsored retirement plans for a secure financial future.