In district court in Los Angeles, CA, plaintiffs are suing Pacific Investment Management Co., Allianz Global Investors, and parent company Allianz Asset Management for breach of fiduciary duty. The plaintiffs in the class action lawsuit contend that the fiduciaries of the Allianz Asset Management of America 401(k) Savings and Retirement Plan, which is the plan in which they are participants, violated their duty of prudence and loyalty under ERISA by placing a lot of high-priced proprietary funds in the plan\u2019s core menu for investments.<\/p>\n
The lead plaintiffs in the 401(K) lawsuit are Nathan Marfice and Aleksandr Urakhchin. They contend that the all-in plan costs are at 77 basis points, which was 75 basis points above the average retirement plan that holds anywhere from $500 million and $1 billion in assets. They said that this cost plan participants more than $2.5 million in excessive fees.<\/p>\n
A spokesperson for Allianz says the class action case has no merit. Other parties listed as defendants include:<\/p>\n
\u00b7 The committee of the Allianz Asset Management of America 401(k) plan<\/p>\n
\u00b7 Allianz Asset Management of America LP<\/p>\n
\u00b7 Allianz Global Investors Fund Management<\/p>\n
\u00b7 Allianz Asset Management of America<\/p>\n