A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
Johnson & Johnson Stock Drop Case
This case has been quite iterative, with plaintiffs amending original claims of fiduciary breach due to an artificially inflated stock price resulting from management’s concealment of asbestos in its talc-based products. The stock price declined dramatically once news of this became public, negatively affecting participant balances in the Employee Stock Ownership Plan (ESOP). The standard […]Read More
Yale University Retirement Plan Case
This class action lawsuit involves claims of fiduciary breaches due to failure to oversee the Plan, through retention of underperforming investments, costing participant millions of dollars in retirement savings, as well as excessive recordkeeping and investment fees. Plaintiffs also claim that Yale acted imprudently through the unusual delegation of responsibility for the almost $7 billion […]Read More
Schneider Electric 401(k) Plan Case
This previously reported lawsuit will proceed with regard to several allegations. Plaintiffs in this case, participants in the Schneider Electric 401(k) Plan, allege that Aon Hewitt Investment Consulting (AHIC) and plan fiduciaries breached fiduciary duties in violation of ERISA. Their selection of the Aon Trusts, target date investment vehicles that lacked performance histories, as replacements […]Read More