Seven Companies Sued For Excessive 401(k) Fees
October 2, 2006
Seven major corporations have been sued in federal courts for allegedly allowing mutual fund firms to charge millions of dollars in excessive 401(k) fees through hidden revenue-sharing agreements. Combined, the companies named in the suits have more than 400,000 participants in their 401(k) plans. They are Bechtel Group, Caterpillar, Exelon, General Dynamics, International Paper, Lockheed Martin and United Technologies. The fund companies, unnamed, allegedly charged higher fees and shared the revenue-sharing portion with 401(k) administrators that determined which funds should be included in the plans.
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