Plexus Corp. 401(k) Plan Breaches of Fiduciary Duty Class Action

The complaint for this class action asserts that the primary purpose of the Employee Retirement Income Security Act (ERISA) is to protect the participants and beneficiaries in private retirement plans. Those who manage or administer the plans must act solely in the interest of the interest of these parties. The complaint brings suit against Plexus Corp. and its Board of Directors for not properly managing its 401(k) plan.

The class for this action is all participants and beneficiaries of the Plexus Corp. 401(k) Retirement Plan, between July 14, 2014 and the date of judgment in this case.

The complaint summarizes the issues concisely: “The law is settled that ERISA fiduciaries have a duty to evaluate fees and expenses when selecting investments as well as a continuing duty to monitor fees and expenses of selected investments and remove imprudent ones.”

It quotes an earlier case as saying, “Expenses, such as management or administrative fees, can sometimes significantly reduce the value of an account in a defined-contribution plan … by decreasing its immediate value, and by depriving the participant of the prospective value of funds that would have continued to grow if not taken out in fees.”

The complaint makes three principal charges against the administration by Plexus, its Board, and its agents:

  • That they “authoriz[ed] the Plan to pay unreasonably high fees for recordkeeping[.]”
  • That they “fail[ed] 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[.]”
  • That they “maintain[ed] certain funds in the Plan despite the availability of identical or similar investment options with lower costs, and/or better performance histories[.]”

While certain mutual funds in the Plan offered different share classes outside the Plan that charged lower fees and achieved higher returns, the complaint claims, they did not select these share classes for the Plan.

Also, the complaint alleges that the Plan also chose more expensive actively-managed funds, when index funds could offer provide or better performance at a lower cost.

The complaint claims in addition that the administrative fees charged to the Plan participants “were consistently greater than the fees of most comparable 402(k) plans, when fees were calculated as cost per participant.”

Finally, the complaint asserts that certain dealing between the defendants in the case and the investment advisor and consultant to the Plan amount to party-in-interest prohibited transactions.

All these things, the complaint alleges, are breaches of the fiduciary duties the company, its Board, and its agents owed to the participants.

The complaint asks that the defendants be required “to make good to the Plan all losses resulting from their breaches of fiduciary duty.”

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Plexus Corp. 401(k) Plan Breaches of Fiduciary Duty Complaint

July 14, 2020

The complaint for this class action asserts that the primary purpose of the Employee Retirement Income Security Act (ERISA) is to protect the participants and beneficiaries in private retirement plans. Those who manage or administer the plans must act solely in the interest of the interest of these parties. The complaint brings suit against Plexus Corp. and its Board of Directors for not properly managing its 401(k) plan.

Plexus Corp. 401(k) Plan Breaches of Fiduciary Duty Complaint

Case Event History

Plexus Corp. 401(k) Plan Breaches of Fiduciary Duty Complaint

July 14, 2020

The complaint for this class action asserts that the primary purpose of the Employee Retirement Income Security Act (ERISA) is to protect the participants and beneficiaries in private retirement plans. Those who manage or administer the plans must act solely in the interest of the interest of these parties. The complaint brings suit against Plexus Corp. and its Board of Directors for not properly managing its 401(k) plan.

Plexus Corp. 401(k) Plan Breaches of Fiduciary Duty Complaint
Tags: Breach of Fiduciary Duty, ERISA Violations, Employment Violations, Retirement Plan Mismanagement