{"id":8031,"date":"2025-05-15T15:55:48","date_gmt":"2025-05-15T19:55:48","guid":{"rendered":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8031"},"modified":"2025-05-15T15:55:48","modified_gmt":"2025-05-15T19:55:48","slug":"down-goes-pentegra-in-a-jury-trial-verdict","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8031","title":{"rendered":"Down goes Pentegra in a jury trial verdict"},"content":{"rendered":"<p>If you\u2019re a 401(k) plan provider and think you can get away with charging sky-high fees while\u00a0prioritizing your own bottom line, think again. A federal jury just reminded us all\u2014<strong>fiduciary\u00a0<\/strong><strong>responsibility under ERISA isn\u2019t just a suggestion, it\u2019s the law.<\/strong><br \/>\nIn the case of\u00a0<em>Khan et al. v. Board of Directors of Pentegra Defined Contribution Plan et al.<\/em>, a\u00a0class of over 26,000 participants in Pentegra\u2019s $2.1 billion Multiple Employer Plan for Financial\u00a0Institutions sued over\u2014you guessed it\u2014<strong>excessive fees, self-dealing, and failure to act like\u00a0<\/strong><strong>actual fiduciaries.<\/strong><br \/>\nThe plaintiffs alleged that Pentegra:<\/p>\n<ul>\n<li>\u00b7 Let the plan rack up unreasonably high administrative and recordkeeping fees.<\/li>\n<li>\u00b7 Lined its own pockets instead of looking out for participants (a big ERISA no-no).<\/li>\n<li>\u00b7 Didn\u2019t even bother using the plan\u2019s scale to negotiate better deals. Spoiler: when you\u2019ve\u00a0got $2.1 billion in assets, you\u2019ve got leverage. Use it.<\/li>\n<\/ul>\n<p>Apparently, the jury agreed. After a close look at the facts, they hit Pentegra with a\u00a0<strong>$38.7 million\u00a0<\/strong><strong>verdict<\/strong>\u2014a clear message that fiduciary breaches are expensive, especially when you\u2019re dealing\u00a0with retirement assets.<br \/>\nThis case is more than just a big number. It\u2019s a wake-up call. If you\u2019re a fiduciary, acting in the\u00a0best interests of plan participants isn\u2019t just your job\u2014it\u2019s your legal duty. Ignore that, and you\u00a0might just find yourself on the wrong side of a courtroom, with a jury reminding you exactly\u00a0how much that duty is worth.<\/p>\n<p><span class='st_sharethis' st_title='{title}' st_url='{url}' displayText='ShareThis'><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>If you\u2019re a 401(k) plan provider and think you can get away with charging sky-high fees while\u00a0prioritizing your own bottom line, think again. A federal jury just reminded us all\u2014fiduciary\u00a0responsibility under ERISA isn\u2019t just a suggestion, it\u2019s the law. In &hellip; <a href=\"https:\/\/therosenbaumlawfirm.com\/blog\/?p=8031\">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\/8031"}],"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=8031"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/8031\/revisions"}],"predecessor-version":[{"id":8032,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/8031\/revisions\/8032"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}