A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
DOL ESOP Lawsuit Settlement
The DOL filed this lawsuit against Sonnax Industries Inc. executives and the Sonnax Plan’s trustee, First Banker Trust Services Inc. The DOL claimed that Sonnax employees paid the two executives $48.8 million to acquire all of the company’s stock on the basis of a “deficient investigation” which overinflated the Sonnax stock price, causing the Plan […]Read More
Aon Hewitt/Lowe’s Lawsuit
Investment consultant to the Lowe’s $5.2 billion/262,000 participant plan, Aon Hewitt, and Lowe’s fiduciaries, have been accused of breaching fiduciary duties under ERISA, by deciding to offer the “untested” poorly performing Hewitt Growth Fund in the Plan, a $350 million fund with no large retirement plan investors. More than $1 billion in 401(k) plan assets […]Read More
Principal LifeTime Hybrid Collective Investment Trusts Case
Participants representing two 401(k) Plans have filed a lawsuit against Principal Global investors and appropriate parties, alleging fiduciary breaches in the selection and monitoring of the underlying investment options within the target date funds offered within their respective Plans – the Principal LifeTime Hybrid Collective Investment Trusts (CITs). Determination of underlying funds is within the […]Read More