{"id":3502,"date":"2018-04-17T09:55:10","date_gmt":"2018-04-17T13:55:10","guid":{"rendered":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=3502"},"modified":"2018-04-17T09:55:10","modified_gmt":"2018-04-17T13:55:10","slug":"home-depot-is-the-next-401k-lawsuit-target","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=3502","title":{"rendered":"Home Depot is the next 401(k) lawsuit target"},"content":{"rendered":"<p><span class=\"s3\">The company that told us we can do home improvement by ourselves might not have been able to properly run their 401(k) plan.<\/span><\/p>\n<p><span class=\"s3\">Home Depot is now the target of a $140 million class-action lawsuit that was filed in the <\/span><span class=\"s4\">U.S. District Court of the Northern District of\u00a0<\/span><span class=\"s5\">Georgia. <\/span><\/p>\n<p><span class=\"s4\">The lawsuit claims that Home Depot violated their fiduciary duty by mismanaging their 401(k) retirement plan. According to the complaint, Home Depot selected multiple <\/span><span class=\"s4\">poorly-performing<\/span><span class=\"s4\"> funds for its 401(k) plan, that allowed their investment advisers to charge its employees unreasonable fees. It also claimed that Home Depot turned a blind eye to a kickback scheme between an investment adviser and the plan\u2019s <\/span><span class=\"s4\">recordkeeper<\/span><span class=\"s4\">.\u00a0<\/span><\/p>\n<p><span class=\"s6\">The Plaintiffs alleges that with their $6 billion plan that Home Depot arranged for the investment advisor Financial to sell investment advisory services through \u201c<\/span><span class=\"s6\">robo<\/span><span class=\"s6\"> advice,\u201d in which \u201ca robot creates cookie-cutter portfolios based on minimal participant input.\u201d It\u2019s also alleged that Home Depot allowed Financial Engines to charge plan participants advisory fees that were in some cases double the competitive rate. While <\/span><span class=\"s6\">Financial Engines was replaced by Alright Financial Advisors<\/span><span class=\"s6\"> in 2017, they rehired Financial Engines as a sub-advisor. The lawsuit names Financial Engines and <\/span><span class=\"s6\">Alright<\/span><span class=\"s6\"> as co-defendants. <\/span><\/p>\n<p><span class=\"s6\">With 20,000 employees, $6 billion in plan assets, and using <\/span><span class=\"s6\">a <\/span><span class=\"s6\">robo<\/span><span class=\"s6\">-advisors, suing Home Depot is an ERISA litigator\u2019s dream. Whether this lawsuit survives a motion for summary judgment is anyone\u2019s guess. Regardless, it\u2019s important for a plan that size to be careful out there.<\/span><\/p>\n<p><a name=\"_GoBack\"><\/a><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>The company that told us we can do home improvement by ourselves might not have been able to properly run their 401(k) plan. Home Depot is now the target of a $140 million class-action lawsuit that was filed in the &hellip; <a href=\"https:\/\/therosenbaumlawfirm.com\/blog\/?p=3502\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3502"}],"collection":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3502"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3502\/revisions"}],"predecessor-version":[{"id":3503,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/3502\/revisions\/3503"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}