Furthermore, the suit claims that Nordstrom’s recordkeeping provider, Alight, offered an expensive managed account service that further inflated the fees charged to plan participants.
Nordstrom Saddled 401(k) Plan With High Fees : Accusations of Self-Dealing
The workers also allege that Nordstrom misused forfeited plan funds, which are typically used to reduce plan expenses for participants. Instead, Nordstrom allegedly used these funds to cover its own contributions to the plan, effectively reducing its expenditures by almost $26 million. The workers claim this constitutes self-dealing, a practice prohibited under ERISA, which mandates that fiduciaries act solely in the interest of plan participants.
“Defendants acted with a conflict of interest in administering the plan and in managing and disposing of its assets,” the workers stated in the lawsuit, emphasizing that Nordstrom’s actions violated the fiduciary duties established by ERISA.
Legal Representation and Next Steps
The plaintiffs in the case are represented by Erin M. Riley of Keller Rohrback LLP, Paul M. Secunda of Walcheske & Luzi LLC, and Todd M. Schneider and James A. Bloom of Schneider Wallace Cottrell Konecky LLP. As of now, Nordstrom has not publicly responded to the allegations, and counsel information for the company was not immediately available.
