Cognizant 401(k) Dispute Stays Alive as Judge Questions Standing

A dispute over Cognizant Technology Solutions US Corp.'s 401(k) fee levels is moving forward, for now, after a federal judge requested more details about how fees are charged to plan participants.

The participants’ standing to challenge certain aspects of the plan’s fee structure may turn on whether these fees are charged uniformly across the plan, or whether they vary based on an individual’s chosen investments, Judge Michael E. Farbiarz said. He denied Cognizant’s motion to dismiss “for now,” but he instructed the parties to submit two-page letters on how the case should proceed.

Farbiarz’s opinion, issued Oct. 27 in ...