As reported by Law360, Lieff Cabraser and co-counsel have filed a proposed ERISA class action lawsuit in Colorado federal court against TTEC Services Corp. on behalf of three workers who allege the customer service tech company and its employee benefits committee failed to negotiate lower fees for its employee’s 401(k) plans, causing employees to suffer millions of dollars in stock losses.
The lawsuit alleges TTEC even admitted to only occasionally monitoring its investment lineup, putting it in direct violation of the Employee Retirement Income Security Act, which requires a plan administrator to monitor a retirement plan’s investment offerings on a continual basis. The lack of action on the company’s part to cut underperforming funds and its failure to intervene on the above-market fees employees were charged caused major losses for TTEC workers.
“Given the plan’s size, it had more than adequate bargaining power to negotiate reasonable fees and expenses for plan administration and recordkeeping,” workers said in the complaint.
Plaintiffs claim TTEC’s 401(k) plan had nearly $200 million in assets as of January 2020. As noted in the complaint, this ranks it in the top 0.4% of defined contribution plans in the nation.
Plaintiffs seek to represent a class made up of all 26,000 employees who participated in the plan or who were beneficiaries from August 25, 2016, to the present. Plaintiffs assert that the court should require TTEC to reimburse the class of workers for the losses they suffered under the company’s plan mismanagement, among other relief. Click here to contact a lawyer at Lieff Cabraser about your TTEC or other ERISA case.
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