THE WHAT? A participant in L Brands’ 401(k) plan has launched a class action suit against the owner of Bath & Body Works charging the US retailer with breaching its fiduciary duties, according to a report published by Pensions&Investments.
THE DETAILS The suit was filed in the US District Court in Columbus and alleges that the Victoria’s Secret manufacturer allowed unreasonable record-keeping expenses to be charged and used more expensive options for investments than necessary.
THE WHY? Much like the former employees that launched a similar suit against Lauder in the summer, the plaintiffs will be seeking to prove that L Brands, with US$1.6 billion in assets lodged in the Savings and Retirement Plan, had the heft to negotiate better terms with record-keeper Wells Fargo and had a duty to investigate cheaper alternatives.