In this suit filed in August 2016, Emory is alleged to have committed numerous fiduciary infractions, most upheld by the court during session on May 10, 2017, with exception of the claim that Emory offered an overabundance of investment options in the plan (111), serving to confuse plan participants, which the judge rejected on the basis that the number of options offered provided ample opportunity for diversification.
The court permitted the following claims to proceed in the case:
- Imprudent selection of retail class shares instead of institutional class shares
- Imprudent retention of underperforming plan investments
- Unnecessary layering of fees for certain investment options
- Imprudent selection of actively managed funds affiliated with the plan’s recordkeepers without review of alternative options
- Offering a TIAA annuity fund instead of a stable value fund
- Imprudent employment of three recordkeepers instead of one
- Revenue sharing relationships with the recordkeepers, which contributed to excessive fees for plan participants
www.bna.com; May 21, 2017.