Class Action Suit Filed Against Xerox HR Solutions, LLC Alleging It Violated ERISA By Charging Excessive And Unreasonable Fees In 401(k) Plans For Ford Employees Who Opted To Receive Investment Advice Through The Plan From Financial Engines
A class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan, Southern Division, against Xerox HR Solutions, LLC (“Xerox HR”). The Complaint seeks to certify the Class on behalf of participants in three of Ford Motor Company’s retirement plans: Ford Retirement Plan, Ford Motor Company Savings and Stock Investment Plan for Salaried Employees, and Ford Motor Company Tax-Efficient Savings Plan for Hourly Employees, and all other plans for which Xerox HR provides recordkeeping services and for which Financial Engines Inc. (“Financial Engines”) provided investment advice to participants.
The complaint claims that Xerox HR, a company that provides platform and recordkeeping services for the administration of retirement plans, including those of Ford Motor Company, among others, was involved in an illegal kickback scheme with Financial Engines, a company that offers advice for saving and investing for retirement to plan participants.
Ford and other companies offer employees the option to pay for Financial Engines’ investment advisory services. In order to be included as the investment advice service provider on Xerox HR’s platform, Financial Engines agreed to pay Xerox HR a significant percentage of the fees it collected from 401(k) plan participants. In order to meet Xerox HR’s demand for a kickback, Financial Engines charged excessive fees to employees who paid for the advice service.
The complaint alleges that Xerox HR conduct violated the fiduciary duties and prohibited transaction rules imposed by the Employee Retirement Income Security Act of 1974 (“ERISA”).
Berger Montague, a firm based in Philadelphia, PA, represents the plaintiffs in the lawsuit. The firm represents plaintiffs in complex and class action litigation and is consistently ranked as one of the top plaintiffs’ law firms in the United States by many publications. Berger Montague has extensive experience representing retirement plan participants, investors, and consumers in class action litigation, and the firm has played lead roles in major cases for over 40 years resulting in recoveries of many billions of dollars for their clients and the classes they represent. Further information about Berger Montague can be found at www.bergermontague.com.
In addition to Berger Montague, the plaintiffs are represented by Schneider Wallace Cottrell Konecky Wotkyns LLP, which represents retirement plan participants, workers and consumers in class action litigation matters around the country. For 24 years, the firm’s attorneys have handled matters involving ERISA benefits, workplace benefits, disability rights, employment discrimination issues and consumer rights. Schneider Wallace has offices in Emeryville, California; Scottsdale, Arizona; and Houston, Texas. On the Web: http://www.schneiderwallace.com
The Miller Law Firm, P.C. has acted as local counsel, and also is experienced with ERISA claims.
Participants in 401(k) plans who opted to receive investment advice through Financial Engines may be members of the class and can obtain more information by calling 215.875.3000. Participants can also contact Todd Collins at 215.875.3040 or email@example.com.
A copy of the complaint is available here.