Citizens Financial faces ERISA class action over alleged retirement plan fees and poor investments
Former employees of Citizens Financial Group have filed a 64‑page class‑action lawsuit in the U.S. District Court for the District of Rhode Island. The plaintiffs allege the bank mishandled its employee retirement plan by offering weak investment options and charging high administrative fees.
The complaint says Citizens failed to select “materially similar” funds that performed better, violating its fiduciary duty of prudence under ERISA. It also claims the bank did not use millions of dollars in forfeited plan assets to offset fees that reached roughly $40 per participant at the end of 2021—about 50% higher than the industry average.
Alleged ERISA violations
According to the filing, Citizens is accused of breaching several ERISA provisions, including the duty of prudence, the duty to monitor other fiduciaries, and engaging in prohibited transactions. The suit seeks a court declaration of breach, damages, and disgorgement of profits.
Source: Courthouse News Service
Who may be affected
The plaintiffs aim to certify a class of nearly 24,000 plan participants who were covered by the retirement plan from January 2021 onward. Anyone who contributed to the Citizens retirement plan during that period could be part of the class and may be entitled to compensation if the court finds in their favor.
Participants should review their retirement statements for unusually high fees and keep any related communications. While the complaint does not specify a filing deadline for claims, staying informed about court developments and any settlement offers is advisable.
Practical steps for plan participants
If you were enrolled in Citizens’ retirement plan, consider the following actions:
- Obtain recent account statements and note any administrative fees.
- Compare those fees to industry benchmarks or peer plans.
- Document any communications from the plan administrator about fees or investment options.
- Monitor court filings for updates on class certification and potential settlement terms.
When legal counsel can help
Employees who suspect they have been harmed by the alleged fiduciary breaches may benefit from consulting an attorney experienced in ERISA litigation to assess their rights and possible remedies.
What this means: our conclusions
- Good newsPossible compensation for affected workers
If the class is certified, participants could receive damages for fees and lost investment gains.
- What to watchHeightened scrutiny of retirement plan fees
The lawsuit may prompt other employers to review plan fees and investment options more closely.
- RiskRisk for companies with similar plans
Employers that do not regularly evaluate investment options could face comparable ERISA actions.
- What to watchERISA litigation trend continues
Nationwide increases in ERISA suits suggest more employees will challenge plan management in the future.
- What to doAction step for plan participants
Review your retirement statements for high fees, keep records, and consider consulting an ERISA attorney.
This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 20, 2026.
Source: Courthouse News Service
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