A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
2Q 2020 Litigation Update Summary
There has been a recent surge of litigation activity reports and updates, most involving excessive fee allegations in the corporate arena, such as the Koch Industries case, with some involving allegations arising from the employment of active management verses passive management, as exemplified in the Matthews International and Costco cases, and particular to target date […]Read More
A California man has been indicted on three counts of bank fraud and aggravated identity theft by fraudulently withdrawing money from participants’ accounts in the Boeing Voluntary Investment Plan, totaling several hundreds of thousands of dollars. The defendant acquired identifying information and retirement account information of the Boeing employees, and then initiated fraudulent withdrawal requests […]Read More
Leventhal Sutton & Gornstein (LS&G) Case
A participant in the LS&G 401(k) Profit Sharing Plan, Jess Leventhal, the Plan and firm itself sued consulting firm MandMarblestone Group (MMG) and plan custodian, Nationwide, for breach of contract, breach of fiduciary duty and “negligence related to cyberfraud against Jess Leventhal’s plan account.” The Plan currently allows withdrawals initiated by form. Subsequent to Mr. […]Read More