A class-action lawsuit alleging participants paid excessive fees for actively managed mutualfunds in a $1.3 billion 401(k) plan has been dismissed in the U.S.District Court for the District of Connecticut.

The complaint alleged that plan fiduciaries of Ferguson Enterprises, aVirginia-based wholesaler of plumbing supplies, breached itsfiduciary obligations by offering an investment menu laden withexcessively expensive mutual funds. Of the plan's 16 investmentoptions, 11 were actively managed funds. The suit also alleged thatthe plan's service provider, Prudential, engaged in prohibitedtransactions in administering the plan and received “kickbacks” inthe form of revenue-sharing payments.

The plaintiff, a former employee of the company, also allegedCapTrust Financial Advisors breached its fiduciary obligations byallowing Ferguson to build out the menu with the actively managedfunds.

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