Employees of Massachusetts Institute of Technology and New York and Yale Universities sued their respective institutions on Tuesday for allegedly allowing them to be charged excessive fees on their retirement savings, The New York Times reported. Each university has several billion dollars in retirement holdings, and the plaintiffs are seeking class-action status. The employees allege that the institutions failed to monitor high plan management fees and poor-performing investments, costing them tens of millions of dollars collectively, according to the Times.
New York University said in a statement that “retirement plans offered to [employees] are chosen and administered carefully and prudently. We will litigate this case vigorously and expect to prevail.” A spokesperson for MIT told the Times that it does not comment on pending litigation. Yale said it was “cautious and careful” with retirement plans and that it planned to defend itself vigorously.
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