Three Tyson Foods employees have filed suit in the United States District Court Western District of Arkansas, Fayetteville Division, contending the company failed to replace the record keeper of its 401(k) plan and address its unusually high fees.
The suit filed Nov. 30 contends Tyson paid unreasonable fees to the plan administrator, Northwest, and failed to use its clout to negotiate lower fees overall for its workers. In court documents, the plaintiffs contend Tyson had more than 67,200 workers participating in the 401(k) program in 2022, which had more than $3.2 billion in assets at the time.
A Tyson Foods spokesperson declined to comment on the suit Monday.
The suit argues Springdale-based Tyson Foods and its board of directors have a fiduciary duty to properly manage the company's employee 401(k) retirement plan by stopping unreasonable fees. The participants in the suit are seeking class action status covering participants in the retirement plan and their beneficiaries starting Nov. 30, 2017, and running through the date of judgment.
Tyson Foods shares rose $1.62, or 3%, to close Monday at $49.82.