ADP 401(k) Investors Advance ERISA Suit Challenging Plan Fees

2026-04-07 18:09:33

Abstract generation in progress

Automatic Data Processing Inc. (ADP) is unable to escape a lawsuit alleging breach of fiduciary duty and prohibited transaction claims under ERISA. A district court judge ruled that genuine disputes of material fact remain concerning allegations that ADP imprudently retained underperforming target date funds in its retirement plan and that the plan engaged in prohibited transactions by covering certain expenses. The ruling indicates that a trial is needed to resolve these issues, particularly regarding ADP’s monitoring process for the target date funds.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.