A proposed nationwide class action filed Monday in Alaska federal court accuses Cook Inlet Region Inc. (CIRI) — one of 12 Alaska Native regional corporations created under the 1971 Alaska Native Claims Settlement Act — of breaching ERISA fiduciary duties by saddling its 401(k) plan with excessive fees and chronically underperforming investments.
Lead plaintiff Luke Layman, an Anchorage resident and plan participant, claims CIRI, its board, plan committee, and unnamed employees allowed high-cost share classes, systemic underperformance, prohibited transactions, and inaccurate disclosures — wasting millions that could have grown participants’ retirements.
CIRI — the largest private landowner in Southcentral Alaska with diverse investments across 45 states (renewables, oil/gas leasing) — sponsors the Cook Inlet Region 401(k) Retirement Plan serving employees of multiple affiliated companies. The plan holds more than $577 million in assets for over 5,300 participants.
The complaint alleges “excessive fees” via higher-cost share classes and “systemic underperformance across multiple funds,” indicating fiduciary failures in selection/monitoring. It also claims inaccurate performance disclosures in annual reports.
“The core argument is that these funds were demonstrably poor choices from the outset and should never have been included or retained in the plan,” the filing states.
The suit does not name investment manager UBS as a defendant but reserves the right to add it later.
Representatives for the parties did not immediately respond to requests for comment Tuesday.
Layman and the proposed class are represented by Joshua B. Cooley and Katherine Elsner of Ehrhardt Elsner & Cooley, and Gary M. Klinger of Milberg PLLC. Counsel information for CIRI was not immediately available.
The case joins a surge of ERISA fiduciary breach challenges targeting large employers and plan sponsors for high fees and poor investment choices — potentially leading to significant settlements and plan reforms to protect employee retirement savings.
