Red Cross Steered Workers To Shoddy 401(k), Suit Says
June 16, 2021
Law360 (June 16, 2021, 6:29 PM EDT) -- The American National Red Cross was hit with a proposed class action in a D.C. federal court alleging the nonprofit violated federal benefits law by letting its retirement plan pay excessive fees and letting workers sink their retirement savings into underperforming funds.
The lawsuit filed Tuesday by several Red Cross employees alleged the humanitarian nonprofit and its board of governors carelessly made an underperforming investment fund the default option for its workers' 401(k) for several years, breaching the Employee Retirement Income Security Act.
"The overall breadth and depth of the [Northern Trust] Focus Funds' underperformance raises a strong inference that defendants'...
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