Two former employees of Trader Joe’s have sued the company alleging breaches of fiduciary duty in the management of the company’s 401(k) plan.
The $1.6 billion plan was targeted over Capital Research, the plan’s recordkeeper and the investment adviser to the American Funds. The recordkeeping fees were based on a percentage of assets and came in at $140 a head and the suit alleges that fees should be closer to $40 a head. Also, the plan was targeted over the use of proprietary American Funds and not for using low-cost index funds.
The lawsuit will show whether there is something bad about Trader Joe’s, other than the parking lot.