Northern Trust will pay $2.5 million to settle an ERISA lawsuit relating to its former role as an investment adviser to AutoZone's 401(k) plan.
The plaintiffs sued AutoZone and NT in November 2019 accusing them of allowing "exorbitant management costs" and "hidden trading costs."
https://www.pionline.com/courts/northern-trust-settles-autozone-401k-erisa-suit-25-million
Any heads rolling yet?
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Plaintiffs claim AutoZone and its fiduciary advisor, Northern Trust, not only approved the use of high-fee, actively-managed funds but also excluded the use of low-fee index funds. Plaintiffs allege that this led to immense costs. For example, the average annual expense ratios for the Plan’s funds were six times higher than the average expense ratios for lower-cost Vanguard index funds invested in the very same asset classes.
https://apps.tnwd.uscourts.gov/JudgePham/opinions/1339.pdf