When you’re a plan sponsor and you run your own proprietary mutual fund business and have your 401(k) plan invest in said funds, expect to be sued.
Bessemer Trust Company is being sued over the Bessemer Trust Company 401(k) and Profit-Sharing Plan by plan participants.
The complaint alleges that Bessemer used their 401(k) plan to promote Bessemer Trust’s Old Westbury mutual fund business and maximize the company’s profits.
The plaintiffs say that the plan investing in Old Westbury proprietary funds cost 401(k)( participants millions in excess fees from high cost, poor-performing mutual funds owned by Bessemer Trust.
