InvestmentNews Highlights Schlichter Bogard & Denton’s Claims Against 403(b) Plan Sponsors
A recent InvestmentNews article highlights claims brought by Schlichter Bogard & Denton in lawsuits against several universities that target, among other things, the use of multiple recordkeepers in universities’ retirement plans. The article recounts the success of these claims in recent decisions largely denying motions to dismiss in excessive fee cases brought by Schlichter Bogard & Denton against Duke and Emory University.
Plaintiffs in some recent excessive fee cases brought by Schlichter Bogard & Denton allege that the use of multiple recordkeepers results in excessive administrative and recordkeeping fees for participants because the defendant plans fail to leverage their billions of dollars in assets to obtain reasonable rates. In the cases against Duke and Emory, for example, Plaintiffs point to the fact that Duke uses four recordkeepers and Emory uses three. The InvestmentNews article notes that while many 403(b) plans have multiple recordkeepers, the practice “rarely if ever occurs in 401(k) plans, which consolidate service under a single vendor.”