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Tussey vs. ABB Update

On appeal, the U.S. District Court for the Western District of Missouri agreed with its original ruling in 2012, in that plan fiduciaries abused their discretion by mapping plan assets from one mutual fund to another, specifically, from Vanguard’s Wellington Fund to the Fidelity Freedom Funds (target date series). However, this court remanded the case back to the lower court, as the amount of damages awarded was “speculative” according to court documents. The Judge originally ruled in favor of the plaintiffs in 2012, ordering ABB to pay $21.8 million, however, in reconsidering the case, the Judge ruled that the “plaintiffs failed to prove damages consistent with the method of damage calculation” suggested by the court.

www.benefitspro.com; July 17, 2015.