A participant in a 401(k) plan offered by Greystar Management Services LP has sued the company, alleging plan executives violated their ERISA duties by offering investment options with “imprudent or excessive” fees.
Complaining about the plan’s reliance on actively managed investments, the lawsuit contended that Greystar “could have chosen passively managed funds to offer even as an alternative” to participants.
“These passively managed funds would have resulted in significantly lower administrative fees yet generated comparable returns,” said the lawsuit, which seeks class-action status.
The lawsuit, Torres vs. Greystar Management Services LP, was filed Monday in a U.S. District Court in San Antonio. Greystar Management Services is a subsidiary of Greystar Real Estate Partners LLC, the lawsuit said.
“Greystar failed to make plan investment decisions based solely on the merits of each investment and in the best interests of plan participants,” the lawsuit said. Greystar also “failed to ensure the plan was invested in the lowest-cost investment vehicles.”
Megan Kivlehan, a Greystar spokeswoman, did not respond to requests for comment.
The Greystar 401(k) Plan, Irving, Texas, had assets of $189.2 million as of Dec. 31, 2017, according to the latest Form 5500 filing.