A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
Whole Foods Stock Drop Case
The 5th U.S. Circuit Court of Appeals has upheld the prior decision of the U.S. District Court, rejecting this case filed by Whole Foods 401(k) defined contribution plan participants, claiming that Whole Foods executives breached fiduciary duties by permitting employees’ continued investment in Whole Foods stock, despite its artificially inflated value due to a ‘”widespread […]Read More
A settlement has been reached in which plaintiffs claim that Citigroup breached fiduciary duties under ERISA by offering and retaining affiliated funds in its 401(k) plans despite the availability of lower-cost, better performing funds. Citigroup will pay $6.9 million, which includes attorney’s fees, inclusive but not limited to incentive awards, and litigation expenses. The original […]Read More
T. Rowe Price Self-Dealing Lawsuit
Plaintiffs in this case claim that the plan trustees breached their fiduciary duties under ERISA by failing to “remedy their predecessor’s breaches” or in some cases, waiting too long to offer lower cost versions of T. Rowe Price retail share class funds to 401(k) plan participants. T. Rowe Price and other defendants argue that the […]Read More