Plaintiffs in the ConAgra Brands $1.4 billion, 13,000+ participant Retirement Plan have filed a lawsuit claiming that CongAgra failed to follow the plan document, specifically with regard to the definitions of “compensation and permissible contribution”. Plaintiffs further claim that the defendants’ interpretation of plan language was motivated by the “desire to save money”, denying millions of dollars in benefits to many participants and their beneficiaries, thus in violation of ERISA. The lead plaintiff in the case was laid off in 2015 as part of a CongAgra restructuring program, designed to save ConAgra $300 million over the following three years. The matching contributions for this individual are at issue and exemplify CongAgra’s alleged intentional misinterpretation of the plan document.
www.plansponsor.com; January 7, 2019.