A new lawsuit against a jumbo defined-contribution plan takes aim at the relationship The Vanguard Group, Inc. had as recordkeeper and trustee of participant assets, and the allegedly high fees participants paid to invest in proprietary Vanguard funds.
Fiduciaries to the 401(k) plan sponsored by health care giant Anthem—which held about US$5.1 billion in assets and served more than 59,000 participants at the end of 2014—selected high-cost share classes of Vanguard mutual funds when lower-cost share classes of identical funds were available to the plan, allege a proposed class of Anthem participants.
Participants lost $18 million in retirement savings between December 29, 2009 and July 22, 2013 due to unnecessarily high fees, according to the claim.
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