THE WHAT? Four former employees have sued The Estee Lauder Companies, its directors and fiduciaries over its management of the company 401(k) plan, according to a report published by Pensions & Investments.
THE DETAILS The complainants are accusing the company of breaching its fiduciary duty to monitor the investment management fees, and therefore failing to choose the best value options for the plan.
THE WHY? The plaintiffs allege that, with some US$1.65 billion in assets, Lauder was in a position to strike a deal with JP Morgan over its management fees and that the US prestige beauty giant should have investigated cheaper alternatives.