Five former Dell Technologies employees have filed a lawsuit against the company, alleging that poor oversight of its 401(k) retirement plan led to massive losses for workers. The complaint, filed on Jan. 28 in federal court in Austin, Texas, claims Dell failed to properly manage the plan and cost participants more than $318 million.
According to the proposed class action, Dell violated the Employee Retirement Income Security Act by continuing to offer investment funds that consistently underperformed, even as stronger and less expensive alternatives were available. The plaintiffs argue that this prolonged inaction put employees’ retirement savings at risk and eroded long term returns.