September 4, 2024 - Alliance Coal LLC mismanaged its workers’ retirement plan by hiring an inexperienced and pricey recordkeeper and using forfeited contributions for its own benefit, according to a new federal lawsuit.

Alliance hired a 401(k) recordkeeper that lacked experience managing large plans and charged higher fees than those charged by established, national providers, three former employees of the coal mining company said in a proposed class action complaint. Alliance allowed the provider to charge excessive annual fees as high as almost $221 per person and doesn’t appear to have attempted to negotiate a better deal, according to the complaint.