• SunTrust, the Atlanta banking giant, is being sued for allegely favoring investment plans operated by SunTrust or its subsidiaries that performed poorly and charged higher fees than plans offered by an independent investment companies
  • The suit alleges that under the Employee Retirement Income Security Act of 1974, the defendants had a duty to choose investment options for the benefit of employees, not SunTrust.
  • The suit alleges some of the SunTrust-controlled investment funds charged fees several times higher than comparable funds operated by a prominent third-party investment company.
  • The suit says SunTrust’s 401(k) plan controls more than $2 billion, and the company could have negotiated better fees with outside firms.
  • Company officials removed funds not tied to SunTrust on the grounds of poor performance, but the suit says the company didn’t remove SunTrust-affiliated offerings for poor returns.

Read more in J. Scott Trubey’s article in The Atlanta Journal-Constitution:

SunTrust faces suit over operation of 401(k)  | ajc.comhttp://www.ajc.com/business/suntrust-faces-suit-over-877525.htmlA SunTrust Banks retiree sued his former employer this week, accusing the company of enriching itself on high fees it charged employees who took part in certain company 401(k) plan investments from 2002 to 2010.