Olin Corp. is the latest defendant in a 401(k) class action lawsuit.
The plaintiffs allege that Olin, a chemicals manufacturer, failed to adequately monitor and control the plan’s recordkeeping costs and failed to objectively and adequately review the plan’s investment portfolio with due care to ensure that each investment option was prudent, in terms of cost and performance.
The plaintiffs claim that the use of revenue sharing to pay for recordkeeping resulted in “a worst-case scenario for the plan’s participants because it saddled plan participants with above-market recordkeeping and administrative fees.”
They also claim that the reasonable rates for large plans typically average around $35 per participant, while Olin agreed to pay recordkeeping fees above $100 per participant per year.
