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The Indiana Daily Student

Cook Medical sued for allegedly charging excessive fees to 401k plans

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Bloomington-based Cook Medical, which manufactures and sells medical devices to physicians, is being sued for allegedly charging unreasonable and excessive fees to its employees’ 401k plans. The lawsuit seeks full reimbursement of employee losses, according to Indiana Public Media

Former employee Drew Mataya filed a class action lawsuit with the U.S. District Court of Southern Indiana on June 27. Mataya is represented by Indiana law firm Wagner and Reese. 

Attorney Timothy Devereux told Indiana Public Media that the fees were the result of a failure of Cook’s fiduciary responsibilities, such as ensuring that excessive fees are dismissed.   

Devereux said in the article that a one percent fee increase can reduce employee returns by up to 28% over time. It is unclear how much money employees have lost, so the firm is requesting documents from Cook. 

Additionally, employees were being offered shares at retail rates instead of lower-priced institutional rates they were entitled to, according to Devereux. 

The lawsuit alleges Cook has violated the Employee Retirement Income Security Act, a law designed to protect individuals who have retirement or health plans with private entities. 

According to Bloomberg Law, 170 lawsuits have alleged ERISA violations since 2020. So far, verdicts have favored employees — 19 employers have settled for a combined $68 million and only about a dozen cases have been dismissed as of April. 

In response to the lawsuit, Cook Medical told WRTV, “We take our fiduciary responsibilities very seriously and we will defend this lawsuit vigorously."

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