Coca-Cola Consolidated Inc.’s $784 million 401(k) plan is one of the latest class-action ERISA lawsuits for breaching their fiduciary duty.
The complaint says the continued offering of the actively managed Fidelity Freedom Funds target-date fund (TDF) suite represented an ongoing fiduciary breach.
Also, the complaint takes issue with other fund options on the plan menu: Carillon Eagle Small Cap Growth Fund Class R5 and the T. Rowe Price Mid-Cap Value Fund, which the plaintiffs contend underperform their underling indexes.
The plaintiffs here allege that also alleges that Fidelity, as recordkeeper for the plan charges high fees.
The lawsuit contends that the average cost for recordkeeping and administration in 2017 for plans much smaller than the Plan was $35 per participant and that the Plan contracted for per-participant annual recordkeeping fees of $59 a head. Plaintiffs claim that plans of that size should pay recordkeeping fees of no more than $14-21 a head.