Plan Sponsors Besieged by 401(k) Fee Lawsuits
Each complaint seeks to recover excessive fees and investment losses from plan sponsors and fiduciaries. Individual corporate executives, directors, investment board of directors, and investment committee members may all be personally liable for losses under ERISA.
http://www.tflg.info/new/tflg/Plan_Sponsors_Besieged_by_401(k)_Lawsuits.pdf?advisorid=3001741Novant Health Sued by Current and Former Employees
by Thomas E. Clark, Jr. JD, LLM – March 13, 2014
On March 12, 2014, a class action ERISA lawsuit, Kruger v. Novant Health, Inc., was filed in the Middle District of North Carolina by a group of current and former participants in two 401(k) plans sponsored by Novant Health, Inc., a major hospital system in the southeast. The plaintiffs allege that the plans’ fiduciaries violated ERISA by (1) allowing excessive fees to be paid to the plans’ broker, D.L. Davis & Company, Inc., (2) allowing excessive fees to be paid to the plans’ recordkeeper Great West, and (3) including more expensive share classes for all of the plans’ mutual funds. In 2012, the plans’ combined assets totaled $1.42 billion with about 25,000 participants.
http://blog.fraplantools.com/plan-sponsor-sued-6-million-paid-to-broker/Walmart, Merrill Lynch Agree To Pay $13.5 Million
To Settle 401(k) Fiduciary Lawsuit
…giant investment firm received undisclosed “kickback payments” from outside mutual fund companies…
http://www.forbes.com/sites/williampbarrett/2011/12/05/walmart-merrill-lynch-agree-to-pay-13-5-million-to-settle-401k-fiduciary-lawsuit/Prudential, Cigna in
$35 million 401(k) suit settlement
Prudential Retirement Insurance and Annuity Co. and Cigna Corp. have agreed to pay $35 million to settle a class action in which Cigna workers claimed their 401(k) fees were too high and that the plan engaged in self-dealing at the expense of its workers.
http://www.investmentnews.com/article/20130625/FREE/130629960#Breaking: New Excessive Fee Case
Filed By MassMutual
On November 5, 2013, employees of Massachusetts Mutual Life Insurance Company (“MassMutual”) filed an ERISA class action lawsuit against their employer alleging self-dealing and excessive fees. (continue reading…)
http://blog.fraplantools.com/new-excessive-fee-case-filed-by-massmutual-employees/?goback=.gde_2501193_member_5803678511394738178#%Fidelity is being sued
by a former employee
over their own 401(k) plan.
http://smarthr.blogs.thompson.com/2013/02/21/plan-participants-again-sue-fidelity-for-alleged-self-dealing/
Int’l Paper to pay $30 million
to settle retirement plan suit
International Paper has agreed to pay $30 million and make some major changes to its retirement plans to settle an excessive fees lawsuit brought by current and former plan participants.
http://www.benefitspro.com/2013/10/01/intl-paper-to-pay-30-million-to-settle-retirementIs 401(k) Litigation the ‘Next Asbestos’?
When legal experts look at a central element of your business model and compare the possible future to past events like airline deregulation and tobacco and asbestos industry settlements, things are not exactly looking good. A recent Retirement Income Journal article touches on these themes in exploring the likely impact of the rising tide of lawsuits over allegedly excessive fees charged to 401(k) participants.
Click blue under lined link below.