Participants in JPMorgan Chase & Co.’s (JPM) $21B 401(K) plan are suing the bank. The plaintiffs, who have filed a proposed class-action securities case, claim that the firm caused employees to pay excessive fees of millions of dollars.
According to the complaint, JPMorgan and a number of committee and board members were in breach of their fiduciary duties when they purportedly kept proprietary mutual funds that came from affiliate companies and the bank in the retirement plan for several years even though these options were almost identical to less expensive funds that were not only available but also were performing better.
The plaintiffs contend that during the class period at issue—from ’10-’15—about half of the investment choices in the retirement plan consisted of proprietary funds. They are accusing JPMorgan of keeping up business deals that were lucrative for the firm with BlackRock Institutional Trust Co. , which allowed BlackRock to inundate the 401(k) plan with its funds.