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Anthem sued for using retail share of Vanguard funds

Participants in a 401(k) plan sponsored by Anthem lost millions in retirement savings due to unnecessarily high fees, according to a court claim.

By Nick Thornton | Updated on January 07, 2016
Photo: AP

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 $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.

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Nick Thornton

Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.

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