The New 401(k) Argument: Vanguard Costs Too Much
So, apparently, do some index funds.
The Lawsuits Keep Coming
Last week, Anthem’s $5 billion 401(k) plan was served with a class-action lawsuit, for holding funds with “excessive fees.” That makes about 40 actions so far against large 401(k) plans. More will surely be filed, as plaintiffs have been encouraged by sizable out-of-court settlements in several cases, as well as a favorable Supreme Court decision earlier this year in Tibble vs. Edison International.
As the low-hanging fruit becomes plucked, plaintiffs must stretch further with their complaints. The Anthem case is particularly bold, setting three precedents for 401(k) lawsuits.
John Rekenthaler has a position in the following securities mentioned above: VINIX. Find out about Morningstar’s editorial policies.