A federal judge in Iowa has dismissed a class-action brought by a 401(k) plan sponsor alleging Principal Life Insurance Co. breached its fiduciary duties by charging excessive fees associated with the servicing of the plans.
McCaffree Financial Corp., the lone named plaintiff in the case, alleged Principal charged "grossly excessive" investment management fees to plan participants by structuring investment products that only invested in Principal propriety mutual funds.
"By structuring its investment products in this way, Principal reaps substantial fees on top of the fees charged by its own mutual funds. Nothing justifies this extra layer of fees," the complaint, filed last March, said.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
