Seven major corporations have been sued in federal courts for allegedly allowing mutual fund firms to charge millions of dollars in excessive 401(k) fees through hidden revenue-sharing agreements. Combined, the companies named in the suits have more than 400,000 participants in their 401(k) plans. They are Bechtel Group, Caterpillar, Exelon, General Dynamics, International Paper, Lockheed Martin and United Technologies. The fund companies, unnamed, allegedly charged higher fees and shared the revenue-sharing portion with 401(k) administrators that determined which funds should be included in the plans.

(c) 2006 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.