Former employees at American Express (Amex) have filed suit alleging that the credit card company maintained underperforming funds in its 401(k) plan, including target-date funds (TDFs). In their Employee Retirement Income Security Act (ERISA) proposed class action, the workers claim that the investment mismanagement cost them hundreds of millions of dollars in future savings. The case is Rivetti et al. v. American Express Company et al., Case Number 1:26-cv-04082, U.S. District Court for the Southern District of New York.
Matthew Rivetti, Natalie Feliz, and Shamroze Moosa filed their complaint on behalf of a proposed class of all participants in the Amex employee 401(k) plan, which holds about $9 billion in assets for 40,000 plan participants. In their complaint, the plaintiffs name Amex, its retirement savings plan investment committee, and Tammy Yee, Amex’s vice president of global well-being and benefits, as defendants.
According to Rivetti and the other named plaintiffs, Amex offered various TDF and other investment funds in its 401(k) plan that underperformed in comparison to cheaper alternatives. The plan included a proprietary Amex TDF Services as its default investment option, which also underperformed its benchmarks and comparable available investments. As a result, the plaintiffs claim that Amex’s actions breached the fiduciary duties of prudence and loyalty under ERISA and caused them to lose millions in retirement savings. The plaintiffs further alleged that Amex had a material conflict of interest in offering certain funds in its 401(k) plan, since their participation benefited Amex’s business partner, Morgan Stanley Investment Management Inc.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
