Nordstrom store in Baltimore, Maryland.
Nordstrom has cost its 104,811 workers millions in savings by mismanaging its $3.4 billion 401(k) plan, overpaying for administrative services and using money forfeited by former employees for its own benefit, allege employees in a class-action lawsuit filed last week. The employees have filed suit under the Employee Retirement Income Security Act (ERISA) for breach of ERISA's fiduciary duties.
The Nordstrom plan's annual fees for recordkeeping and managed account services were at least $63 per person over the past few years, when a reasonable fee would have been closer to $22 per person, the employees say. The company's failure to monitor these fees or negotiate a better deal cost the plan tens of millions of dollars, according to the complaint.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
