The lawsuit says employees could have saved $2.5 million if lower cost options from other managers, including index funds, were included in their 401(k) plan offerings. Allianz Global Investors , 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 Basic Income Security Act of 1974 , by populating the ( ) plan 's core investment menu with high - risk proprietary funds . This lawsuit follows recent cases that resulted in other asset managers , such as Fidelity Investments , settling similar , allegedly excessive fees ; Fidelity settled a pair of suits for $ 12 m last year .
Allianz Global Investors , 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 Basic Income Security Act of 1974 , by populating the ( ) plan 's core investment menu with high - risk proprietary funds . This lawsuit follows recent cases that resulted in other asset managers , such as Fidelity Investments , settling similar , allegedly excessive fees ; Fidelity settled a pair of suits for $ 12 m last year .