A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
A proposed ERISA class action lawsuit has been filed by a participant in the Sears Holdings Savings Plan alleging that Sears continued to offer company stock in the Plan although imprudent. More specifically, the lawsuit contends that the defendants’ ignored the excessive risk to participants due to the rise in the debt-equity ratio of Sears, […]Read More
Nestle Case Dismissed
The plaintiffs in this case, representing participants and beneficiaries in the Nestle 401(k) Savings Plan, claim Voya Retirement Advisors (VRA) was not entitled to fees paid for online advice and managed account programs offered through Financial Engines. Thus, VRA and other defendants breached their duties and engaged in prohibited transactions violating ERISA. The case was […]Read More
TIAA Case Settlement
TIAA has reached a settlement agreement in lawsuit claim from its own employees, which accused the company of self-dealing within the company’s retirement plan. The settlement will apply to participants in the TIAA Retirement Plan from October 14, 2009 – April 30, 2017. Monetary amounts approximating $5 million and non-monetary settlement terms were reached. TIAA […]Read More