Plan Fee Lawsuit Risks
Litigation over retirement plan fees has been on the rise in recent years. Since 2020, there have been more than 170 such suits, breaking previous records. And while these cases used to affect mostly larger plans, smaller plans with fewer assets have become targets of aggressive prosecutors. Defense costs for such cases often exceed several million dollars — with some lawyers insisting on retainers of up to $15 million. Settlements and damages awarded to plaintiffs can also easily reach the multimillion-dollar range.