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MIT Lawsuit

Claims of breaches in fiduciary duty due to excessive recordkeeping and investment fees for some of the funds in the MIT defined contribution plan stand, according to a federal judge in this case. That said, however, the judge differed from the magistrate’s ruling regarding the claim of prohibited transactions based on an “alleged kickback scheme between Fidelity and the plan.” The federal judge agreed with the lower court ruling that the plaintiffs – participants in the MIT plan – did not sufficiently allege “subjective intent” because of Fidelity and its CEO, Abigail Johnson’s significant contributions to MIT. Likewise, the judge also dismissed a prohibited transactions claim regarding certain transactions between the plan and the Fidelity mutual funds, and the plan’s non-mutual fund options.

www.bna.com, from Pension and Benefits Daily; October 6, 2017.