My daughter works at a local restaurant and I think it doesn’t look good when employees there, order out. I also understand why a mutual fund company puts their mutual funds in a 401(k) plan, even if it makes them look like easy targets for an ERISA class action lawsuit.
A federal judge in New York just dismissed an ERISA lawsuit against AllianceBernstein and the company’s 401(k) plan fiduciaries, rejecting allegations that offering their proprietary investments was imprudent and an example of self-dealing.
Their class action was a complaint that AllianceBerenstein funds were underperforming. “Plaintiffs do not allege specific facts that directly demonstrate … defendants acted for purposes other than providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the plan,” Federal judge Lewis J. Liman wrote. Their allegations of underperformance by several investments “is not of sufficient duration or magnitude to create an inference of misconduct,” he wrote.
