SAN ANTONIO – Editor’s note: This story was published through a partnership between the San Antonio Business Journal and KSAT.
An international construction and engineering firm headquartered in San Antonio faces what could become a class-action lawsuit over the management of its 401(k) retirement plan.
The plaintiffs — James Blackmon, Justin Rozelle, Eric Myers and Jared Munson, who are participants in the program administered by Zachry Group — filed a complaint against the firm in federal court Aug. 21, as first reported by the San Antonio Express-News. It is unclear whether the plaintiffs still work for Zachry or its subsidiaries.
Zachry Group has not responded to the Business Journal’s request for comment on the lawsuit.
The defendant is named as Zachry Group holding company Zachry Holdings Inc., misspelled throughout the complaint as “Zachary Holdings.”
In the complaint, the plaintiffs allege that the firm failed to objectively and adequately review the plan’s investment portfolio with “due care to ensure that each investment option was prudent, in terms of cost” as required under the Employee Retirement Income Security Act of 1974. They also claim that Zachry kept certain funds in the plan despite the availability of “identical or similar investment options with lower costs and/or better performance histories.”