CVS 401(k) Lawsuit Investigation for Excessive Fees

November 5, 2015

Important Information

Attorneys working with ClassAction.org are no longer reviewing claims for this case. The information here is for reference only. A list of open investigations can be viewed here.

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At A Glance

This Alert Affects
Current and former CVS employees who invested in a target date fund through the company's 401(k) plan.
What's a Target Date Fund?
A target date fund is a type of mutual fund that anticipates a retirement date and automatically resets its asset mix accordingly. For instance, a younger worker may choose a 2050 target date fund so he can retire in 2050, while a 2025 fund may be more appropriate for someone closer to retirement age.
What's Going On?
Allegations have surfaced that certain funds offered through CVS' 401(k) plan carry excessive and hidden investment management fees that are essentially coming out of the pockets of employees. Attorneys are now investigating whether CVS can be sued for allegedly violating its legal responsibilities to employees by knowingly including these funds in its 401(k) plan.
Which Funds Are Affected?
Principal Lifetime 2010, 2020, 2030, 2040 and 2050 Separate Accounts; Principal Lifetime Strategic Income Separate Account; and Principal Stable Value Fund Common/Collective Trusts.