The Stacking Benjamins Show · Wednesday, July 8, 2026
A lawsuit against Alliance Bernstein concerning its $1.3 billion 401(k) plan has been dismissed. The plaintiffs alleged that the company breached its duties by using its own investment products, including a target-date fund as the default option. The court found that the plaintiffs failed to demonstrate a breach of duties or prohibited transactions.
“Alliance Bernstein 401K lawsuit booted.”
“Alliance Bernstein this week, Amiel writes, defeated a lawsuit over the use of its own products and the company's own $1.3 billion 401K and the result has lessons for other plan sponsors.”
“The lawsuit filed in 2022, failed to show that the asset manager could breach its duties of prudence and loyalty and it did not successfully allege any prohibited transactions, the court stated.”