Estee Lauder Faces 401(k) Excessive Fee Lawsuit


Former plan participants of Estee Lauder’s 401(k) Savings Plan have filed a class-action lawsuit against the company, its board of directors, and the plan’s investment committee, alleging the company breached their fiduciary duties under the ERISA act. The plan participants claim the company failed to prevent the employee benefit plan from paying record-keeping fees and lower investment.

The lawsuit states that “Despite the fact that these funds charged grossly excessive fees compared with comparable or superior alternatives, and despite ample evidence available to a reasonable fiduciary that these funds had become imprudent due to their higher costs relative to the same or similar investments available.” The plaintiffs claim these breaches cost the plan and its participants millions of dollars in damages.

If a corporate giant like Estee Lauder is struggling with combating these claims, just imagine a small business experiencing a claim like this! Lawsuits like these could not only wipe out the plan, but the entire business. Protect your small business today with an ERISA bond package.  Our ERISA bonds are available for instant quote and purchase. We also include Fiduciary Liability Insurance and Cyber Liability Insurance in our 2 and 3-year ERISA bond packagesFiduciary Liability Insurance protects the fiduciary against claims of actual or alleged breaches of duty, while Cyber Liability Insurance, which only comes with the ERISA bond package, helps you adeptly respond to a data breach. Contact us today to purchase your package.