In August 2022, Lieff Cabraser and co-counsel filed a class action lawsuit in federal court in Colorado against customer service tech company TTEC Services Corp. and its employee benefits committee on behalf of workers who allege the company failed to negotiate lower fees for its employee’s 401(k) plans, causing employees to suffer millions in stock losses.
Plaintiffs allege that TTEC customer experience tech company caused millions in employee savings plan losses by failing to negotiate lower fees for its workers’ 401(k) plan and “only occasionally” monitoring its investment lineup in violation of the Employee Retirement Income Security Act.
The lawsuit alleges direct violation by TTEC of the Employee Retirement Income Security Act (“ERISA”), as TTEC admitted to only occasionally monitoring its investment lineup; ERISA requires that a plan administrator 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.
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. The lawsuit asks the court to require TTEC to reimburse the class of workers for the losses they suffered under the company’s plan mismanagement, among other relief.