A class action lawsuit brought by former SeaWorld employees that alleged participants in the SWBG LLC 401(k) plan were harmed will continue.
The former employees’ arguments sustained the fiduciary breach of the duty of prudence allegations, count one, and the second charge, a related count, for the breach of the duty to monitor plan investments and covered service providers.
The former employees allege harm to their retirement investments because of high-cost, underperforming investments in the plan when lower-cost options were available. The former employees also allege the plan paid excessive administrative and recordkeeping fees and imprudently selected and retained actively managed target-date funds from American Century.
The judge did grant part of the SeaWorld defendants’ motions to dismiss the amended complaint, including the motion by Alliant Insurance Services, which served as a fiduciary consultant to the plan and provided financial advice and assistance with fiduciary oversight responsibilities.