Retirement plan fee disclosure is sure to be saturated with litigation and resulting class-action settlements. Why? Because it's cheaper to settle than to keep arguing.
Such a settlement, Tussey v. ABB, Inc., which CFO magazine is calling the "first class action over 401(k) fees to be tried and decided on its merits," just happened not long ago in a Missouri federal court.
According to the court, ABB, a manufacturer of power and automation equipment, violated their fiduciary duties to the defined contribution plan and its participants when they failed to monitor recordkeeping costs and negotiate for rebates from Fidelity Trust, a recordkeeper that's part of Fidelity Investment's family of service providers.
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