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

Automatic Data Processing Inc. can’t escape breach of fiduciary duty and prohibited transaction claims under ERISA after a district court ruled genuine disputes of material fact remain regarding the allegations.

These disputes preclude summary judgment on allegations that ADP imprudently retained underperforming target date funds in its retirement savings plan and engaged in prohibited transactions by causing the plan to pay certain expenses, Judge Evelyn Padin said Monday. Triable issues also remain regarding the plan participants’ breach of fiduciary duty claims, finding sufficient evidence over whether the defendants followed a prudent process in monitoring the target date funds and whether ...