Participants in Delta Air Lines’ Delta Family Care Savings Plan have filed a class action against the company and the committee responsible for overseeing its retirement fund over alleged violations of the Employee Retirement Income Security Act (ERISA). According to the complaint, the retirement plan offered by the defendants can “demand and obtain lower cost investment options” from providers eager to market their services due to Delta’s prominent position in the marketplace. The lawsuit— formally filed against Delta Air Lines, Inc., the Administrative Committee of Delta Air Lines, Inc. and its vice president of global human resources services—alleges the defendants breached their fiduciary duty to by failing to provide plan participants with easily available lower cost investment options. On top of these claims, the lawsuit says the defendants unlawfully allowed the retirement plan to be charged “costs and fees for administrative services like recordkeeping which were far in excess of what the plan should have paid,” costing proposed class members millions of dollars that could have otherwise been invested.
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