Judge dismisses ERISA complaint against Capital One Financial

A federal district court judge in Alexandria, Va., dismissed an ERISA complaint against Capital One Financial Corp. by a 401(k) plan participant who accused the company and plan trustees of not controlling record-keeping costs and offering certain investment options that cost more than comparable options in sizeable plans similar.

The allegation of excessive recordkeeping fees was dismissed due to the plaintiff’s “failure to report” under ERISA rules, U.S. District Judge Anthony J. Trenga wrote in a May 27 ruling in the Morales vs. Capital One Financial case. Corp. The judge dismissed the complaint after holding a hearing on May 27.

Mr. Trenga dismissed the allegation regarding the investment options, noting that the plaintiff lacked standing because he had not invested in the three options cited in his complaint. He also dismissed an allegation that the defendants failed to monitor the trustees.

The judge said the plaintiff could amend the lawsuit on the alleged record keeping and fiduciary oversight within 14 days of his decision.

Mr. Morales filed the lawsuit on Dec. 31, seeking class-action status.

The associated savings plan of Capital One Financial Corporation, McLean, Virginia, had $7.9 billion in assets as of December 31, 2020, according to the latest Form 5500.