Kimberly-Clark, the latest big 401(k) lawsuit

Ary Rosenbaum
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Kimberly-Clark Corp. is the latest defendant in a proposed class action Employee Retirement Income Security Act (ERISA) lawsuit. The complaint alleges that Kimberly-Clark breached its fiduciary duties by authorizing the plan to pay unreasonably high fees for retirement plan services.

The 401(k) has more than 16,000 participants and assets of approximately $4 billion. The lawsuit claims Kimberly-Clark’s plan provider arrangement involves “cobbled together services from many providers, which often leads to a duplication of services and higher fees with no additional benefit to plan participants.” The complaint listed 10 covered service providers for the plan, which seems to be quite a lot.

According to the complaint, from the years 2015 to 2019, the average annual administration fees were at least $78 per participant. The lawsuit claims that the fees should $30 per participant, if not lower.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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