According to InvestmentNews, employees of asset management firm American Century Investments, have sued over the firm’s 401(k) plan, the latest in a string of lawsuits targeting financial services companies for their own retirement plans.
The suit claims breach of fiduciary duty under ERISA for excessive fees, imprudent fund selection and for self-dealing by American Century, which plaintiffs contend filled the retirement plan with proprietary funds for its own benefit.
“Defendants have used the Plan as an opportunity to promote American Century’s mutual fund business and maximize profits at the expense of the Plan and its participants,”the suit alleges.
Chris Doyle, a spokesman for American Century, said the suit “is without merit and we intend to mount a vigorous defense.”
American Century joins a growing list of financial services companies whose employees are suing for fiduciary breach in their own 401(k) plan. Allianz Global Investors, Pacific Investment Management, Putnam Investments, Massachusetts Mutual Life Insurance Co., Transamerica Corp., Ameriprise Financial and Fidelity Investments have all been hit with lawsuits in the last few years.