Morgan Stanley accused of mismanaging its 401(k) plan
A participant in Morgan Stanley's 401(k) plan filed a lawsuit Friday in U.S. District Court in New York alleging that it offers investment options that have too-high fees and poor track records, including some mutual funds run by Morgan Stanley itself.
Friday's suit is the latest in a lengthening string of complaints about high fees and poor investment choices at 401(k) and 403(b) retirement plans around the country.
[...] Friday's suit alleges Morgan Stanley treated the plan "as an opportunity to promote Morgan Stanley's own mutual fund business and maximize profits" at the expense of its participants, by offering its own funds when it could have offered ones from other providers that had better performance.
In recent years, dollars have overwhelmingly been flowing into mutual funds and exchange-traded funds that simply track the Standard & Poor's 500 and other indexes.