The Trader Joe’s Company is facing litigation over how it manages its employee retirement plan. The class action Employee Retirement Income Security Act lawsuit was filed in a federal court sitting in another state. The outcome of this case could impact Tennessee employees. The ERISA lawsuit allege mismanagement of investments and failing to closely monitor the employee contribution plan.
Trader Joe’s uses Capital Research for both bookkeeping and investment purposes. The plaintiffs claim that the company receives an exorbitant amount of fees each month, paid out of the retirement plan. The lawsuit asserts that Trader Joe’s has failed to explain to employees how and why fees are paid. The employees say they have a right to know about the ways Capital Research is directly and indirectly compensated for its services.
There are also concerns regarding the company’s bookkeeping practices. Plaintiffs suggest that the fees associated with this service are too high, yet there has been no explanation of why the fees seem excessive. As all fees are paid from an account into which employee’s have contributed from their own income, they have the right to question how Trader Joe’s manages their money and demand a better solution.
ERISA protects the interests of employees who are entitled to rely upon their employer to properly handle their retirement accounts. When mismanagement occurs, Tennessee workers have the right to seek legal recourse through a lawsuit. The civil justice system provides a way for multiple victims to come together to fight for appropriate recompense and hold their employer accountable for inappropriate actions.