What is 401(k) mismanagement?
401(k) mismanagement occurs when plan fiduciaries — typically the employer and an investment committee — charge excessive fees, offer underperforming or proprietary funds, or fail to negotiate institutional pricing for participants. Affected workers may recover losses to the plan under ERISA. Cases typically proceed under ERISA's civil-enforcement provisions in federal court, with relief flowing to the affected plan and its participants.
How these cases work
An ERISA case begins with a careful investigation: reviewing plan documents, Form 5500 filings, fee disclosures, and the plan's investment lineup against peer plans and prudent alternatives. If a viable claim exists, counsel typically files in federal court on behalf of the plan and a class of participants. The court evaluates fiduciary process — not just outcomes.
Signs your plan may be affected
- All-in plan costs above 0.50% for a large plan
- Funds with high expense ratios when cheaper share classes exist
- Recordkeeping fees that have not been re-bid in 3+ years
- Heavy use of the recordkeeper's own proprietary funds
Not sure if your plan fits the pattern?
Tell us about your employer and plan. An attorney will follow up within one business day.
What you can recover
- Plan losses caused by imprudent decisions
- Fee disgorgement
- Equitable removal of fiduciaries
- Costs and attorneys' fees
Who qualifies
- Current and former 401(k) participants
- Beneficiaries of deceased participants
- Plans where conduct fell within the limitations period
Recent developments
- Forfeiture-allocation lawsuits continue to expand to additional Fortune 500 employers.
- Several circuits have clarified pleading standards for share-class and recordkeeping-fee claims.
Related claims in this practice
Frequently asked questions
Reviews are free and most matters are handled on contingency.
Was your 401K plan named in a lawsuit?
We'll listen, ask a few questions, and tell you honestly whether your situation looks like a case. No pressure. No cost.
- Speak directly with an ERISA attorney.
- Contingency representation — no fee unless we recover.
- Confidential. Your employer is never contacted without your consent.
A few quick questions — no legal or financial know-how needed. We'll give you an honest read on whether your situation is worth a closer look.
What kind of retirement plan do you have through work?
Don't worry if you're not sure — just pick the closest one.