A lawsuit filed this week against USC claims that university officials failed to prevent more than 28,000 employees from overpaying for third-party retirement investment and administrative services, “resulting in millions of dollars in excessive recordkeeping fees each year.”
The federal class action follows similar lawsuits brought against eight other schools in recent weeks, including the Massachusetts Institute of Technology, Yale, Johns Hopkins, Emory and Duke universities. The complaints were all filed by Schlichter, Bogard & Denton, a national law firm based in St. Louis with a proven track record in excessive fee 401(k) litigation on behalf of corporate employees.
The suit against USC, like the other cases, alleges that the university allowed retirement plan participants to pay unreasonable — sometimes “duplicative” — administrative and investment management fees. University officials also “failed to prudently consider or offer lower-cost investment alternatives that were available” and instead chose to keep a large number of more expensive, historically underperforming investment options, the law firm alleged in a statement.
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AUGUST 19, 2016 | LOS ANGELES TIMES | ROSANNA XIA