Edward Jones Faces Proposed Class Action Lawsuit Over Excessive 401(k) Fees

Posted on September 10th, 2016 at 2:24 PM
Edward Jones Faces Proposed Class Action Lawsuit Over Excessive 401(k) Fees

From the Desk of Jim Eccleston at Eccleston Law LLC:

An employee has sued Edward Jones because he alleges that the company's 401(k) plan has caused employees to pay high fees for investment management and record-keeping services that supposedly cost them millions in retirement savings. According to the complaint, from August 19, 2010 through the present, customers potentially lost $8 million because of unreasonable fees paid.

The plaintiff further alleges that the plan offered high-cost mutual fund share classes when lower-cost alternatives were available for identical funds. Furthermore, participants of the 401(k) plan would have saved tens of millions more dollars if assets were invested in collective investment trust funds and separately managed accounts.

Edward Jones also allegedly did not offer its customers the option of purchasing lower-cost index funds and stable value funds. Edward Jones offered eight actively managed large-cap funds.  The large-cap funds collectively underperformed and as a result more than $100 million was lost compared to the S&P 500 benchmark and index alternatives. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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