Washington, D.C. counsel Brad Campbell was quoted in an Investment News article titled, “401(k) suit targeting Vanguard fees could support case for active funds.” The article discussed a new 401(k) class action lawsuit that alleges a fiduciary breach for excessive fund fees.

Brad commented on the theme of lawsuits attacking 401(k) fees, saying that they generally assert that a failure to use cheaper investment alternatives is a breach of fiduciary duty, a view that is inconsistent with a fiduciary’s obligations under the Employee Retirement Income Security Act of 1974 to pay a “reasonable fee.”  Brad says that the text of the suit’s complaint, which states that investment costs are “paramount” to prudent investment selection, is “an inaccurate statement of the law.”

“In this litigation, we’ve probably seen the furthest refinement yet of the misinterpretation that fees are the paramount factor to consider,” said Brad.

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