A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
Vanderbilt Settlement Implications for Data Based Cross Selling
Despite dismissal of all claims of breach of duty of loyalty, the court ruled that the plaintiffs in this case sufficiently supported the defendants’ failure to “secure competitive bids for certain plan services”, in violation of ERISA. This case eventually moved to settlement, with terms similar to those of other well-known university 403(b) plan cases, […]Read More
MFS Excessive Fee Settlement
A proposed settlement has been filed in this case in which plaintiffs allege MFS failed to investigate non-proprietary funds in the company’s own retirement plans in lieu of a menu of predominantly MFS investment options, costing plan participants millions of dollars in excess fees. More specifically, MFS was accused of failing to select the least […]Read More
Gucci Excessive Fee Settlement
Upon final court approval, Gucci America will pay $1.2 million, $395,000 of which will be allotted to class counsel and $5,000 to the plaintiff as compensation for class representation. Gucci was accused of failing to disclose investment expenses for the funds offered within its defined contribution plan, as well as the risks associated with the […]Read More