A federal district judge in Alexandria, Virginia, dismissed an ERISA lawsuit against Capital One Financial Corp. by a participant in the 401(k) plan, who accused the company and the plan’s trustees of not controlling the cost of keeping records and offering some investment options cost more than comparable options in plans of similar size.
The charge of excessive recording fees was dismissed because the plaintiff “failed to assert a claim” under ERISA rules, US District Judge Anthony J. Trenga wrote in a May 27 ruling in Morales v. Capital One Financial Corp. The judge dismissed the complaint after a hearing on May 27.
Mr. Trenga dismissed the allegation regarding the investment opportunities, noting that the plaintiff had no standing to sue because he had not invested in the three options identified in his complaint. He also dismissed an allegation that the defendants failed to monitor trustees.
The judge said the plaintiff may amend the complaint regarding the records and fiduciary supervision allegations within 14 days of his decision.
Mr. Morales filed the lawsuit on Dec. 31, seeking class action status.
Capital One Financial Corporation Associate Savings Plan, McLean, Virginia, had assets of $7.9 billion as of December 31, 2020, according to the latest Form 5500.