Managed Account Fee Lawsuit Settles
On November 11, 2022, Juniper Networks, a computer hardware manufacturer, agreed to settle a lawsuit by participants in a 401(k) plan it sponsors for $3 million. The lawsuit alleged that the plan offers managed account services which provide almost no value to the participants but came with a large fee. The plaintiffs contended that the fee of 65 basis points was more than triple what participants paid in similar-sized plans. They also argued that the services should have been a flat rate as the work required to offer the service does not increase as the account assets increase. This was one of many similar lawsuits filed against large plan sponsors where the plaintiffs were represented by the law firm of Walcheske & Luzi in the past two years.