Edward Jones ERISA 401k Class Action Lawsuit Filed

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Santa Clara, CA: Financial firm Edward Jones is facing a proposed ERISA class action lawsuit alleging the investment company paid unreasonably high fees to Mercer HR Services Inc., an affiliate record keeper, which led to the loss of $8 million in retirement savings from Aug. 19, 2010 through the present.

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.

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Last updated October 17 2016

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