The Coca-Cola Bottlers’ Association (CCBA) is facing an ERISA lawsuit in the US District Court for the District of Kansas.
The plaintiffs are participants in the association’s multiemployer 401(k) retirement savings plan. They claim that the CCBA violated ERISA provisions by offering “limited, imprudent investment options and excessive and improper fees.”
Among many examples of imprudence mentioned in the lawsuit, the plaintiffs cite an S&P 500 fund that charged exuberant fees more than seven times the market rate. At the same time, the CCBA failed to consider other more cost affordable plans.
According to the lawsuit, the plaintiffs missed out on other less risky investment opportunities with higher returns, costing them money overtime.
“This imprudent, disloyal, and non-diversified investment resulted in plan participants losing out in millions of dollars in additional retirement savings,” the lawsuit said.
The CCBA’s 401(k) has over 19,000 participants and has over $800 million in net assets.
Ensure your retirement benefits are protected
Millions of Americans work hard, save money, and invest prudently in order to have a fruitful retirement. When a company violates ERISA provisions, it costs people during what should be the most satisfying time of their life.
For this reason, employees can file a lawsuit if their employer violates the protections imposed by ERISA. If the lawsuit is successful, the plaintiff may be granted financial compensation.
The administrative rules governing ERISA provisions can be difficult to navigate. Victims should consult an experienced ERISA lawyer to ensure their claim is filed appropriately and on time.