Schlichter Bogard & Denton Sues ADP TotalSource on Behalf of Participants in its $4.4 billion Multiple Employer Plan
On May 7, Schlichter Bogard & Denton filed suit against ADP TotalSource Group in the District of New Jersey on behalf of participants in its ADP TotalSource Retirement Savings Plan – a multiple employer plan (“MEP”) with an estimated $4.4 billion in assets.
The suit alleges, among other things, that ADP TotalSource’s failure to monitor recordkeeping fees caused participants to pay excessive fees and that ADP TotalSource unlawfully paid itself from plan assets. Further, the suit contends that ADP TotalSource selected and retained underperforming funds in the MEP, causing participants to incur millions in losses.
Also at issue is ADP TotalSource’s use of plan participants’ “highly confidential data, including social security numbers, financial assets, investment choices, and years of investment history to aggressively market lucrative non-Plan retail financial products and services, which enriched the service providers at the expense of participants’ retirement security.”
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