In their complaint, the plaintiffs cited two high-profile Supreme Court decisions to support their claims. Fidelity Investments , Pacific Investment Management Co ( Pimco ), and their parent company Allianz Asset Management , are being sued in a class-action suit alleging a breach of fiduciary duty due to excessive 401(k) fees. The claimants allege that they violated their duty of loyalty and prudence under the Employee Retirement Income Security Act of 1974 , by populating the 401(k) plan's core investment menu with high-priced proprietary funds. This lawsuit follows recent litigation that resulted in other asset managers, such as Fidelity Investments , settling similar, allegedly excessive fees; Fidelity Investments settled a pair of suits for $2.5 million last year .
Fidelity Investments , Pacific Investment Management Co ( Pimco ), and their parent company Allianz Asset Management , are being sued in a class-action suit alleging a breach of fiduciary duty due to excessive 401(k) fees. The claimants allege that they violated their duty of loyalty and prudence under the Employee Retirement Income Security Act of 1974 , by populating the 401(k) plan's core investment menu with high-priced proprietary funds. This lawsuit follows recent litigation that resulted in other asset managers, such as Fidelity Investments , settling similar, allegedly excessive fees; Fidelity Investments settled a pair of suits for $2.5 million last year .