I just came across a very interesting tidbit at IndexUniverse.com via Pensions&Investments Online concerning a class-action lawsuit against Wal-Mart for failing to offer low cost mutual funds in their 401k plan.
According to a post on LawyersandSettlements.com,
A class action lawsuit filed in late March alleges that Wal-Mart, the giant discount retailer, violated mutual fund ERISA statutes and cost its 401(k) employee plan holders and investors $60 million in unnecessary expenditures by purchasing expensive mutual funds, when cheaper alternatives were available.
It’s not like it’s big news that Wal-Mart’s getting sued, since they’re sued on almost a daily basis. It’s also not like it newsworthy because most people like to see Wal-Mart get what they deserve for treating their employees so poorly. It’s newsworthy because, if the lawsuit’s successful, a precedent will be set that could revolutionize the whole 401(k) plan industry.
No longer would employers be able to just throw together some high-fee 401(k) plan to save on costs or allow kickbacks. They would have to put the interests of their employees first. A win would give teeth to enforcement of ERISA and to make sure employers uphold their fiduciary responsibilities to their employees.
Believe it or not, I’m all against class-action lawsuits since it seems that their whole purpose is to enrich the lawyers at the expense of both the plaintiffs and the defendants. Just ask anyone who’s participated in one. However, this one could be different in that it could actually affect a positive change, and do a lot of people good. It’ll be a very interesting event to follow and I wish them success.
You can find a copy of the complaint at ERISAfraud.com (pdf).
Post a Comment