The U.S. District Court found that City National Corporation and its subsidiaries engaged in years of self-dealing in its oversight of its Retirement Plan. The DOL’s EBSA investigation and further litigation revealed that the Plan’s committee approved the Plan’s high fees, but never took any corrective action to remedy. The DOL filed suit in 2015, when the company refused to voluntarily correct its violations and return owed money to the Plan. The court has since ordered the Company to employ a third-party fiduciary to assist in accounting for all mutual fund revenue received from the Plan from 2006-2012, plus lost opportunity costs. The DOL estimates a $6 million+ settlement amount.
www.dol.gov; U.S. Department of Labor News Release; April 18, 2016.