According to court documents, the plan’s payments to Mercer HR Services “increased by 314% between 2010 and 2014 even though market rates for recordkeeping services declined over that period and even though the number of plan participants only increased by 22%.”
Additionally, the plaintiffs allege Edward Jones offered high-cost fund choices when cheaper alternatives were available. This resulted in an additional payment of $13 million in excessive fees. The plaintiffs allege that plan participants could have saved tens of millions of dollars more if the funds in the plan were invested in collective investment trust funds and separately managed accounts.
Plaintiffs are seeking class action certification for their suit, which calls out a number of investment options by name for being persistently poor performers that were allowed to remain on the investment menu due to their brand's connection with Edward Jones.