A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.
Fidelity Stable Value Fund Dismissed
The suit alleged that Fidelity Management Trust Co. of engaging in imprudent investment strategies for the Fidelity Group Employee Benefit Plan Managed Income Portfolio Commingled Pool (MIP), offered within several 401(k) plans for which Fidelity served as trustee. Specifically, the fund allegedly had low investment returns and high fees during the class period and was […]Read More
Northrop Grumman Settles ERISA Suit
A $16.75 million settlement amount has been reached in this case in which plaintiffs (100,000 participants between 2000-2009) alleged that Northrop fiduciaries violated duties to employees in the company’s two 401(k) plans by “improperly causing” those plans to pay Northrop for administrative services. These types of claims are more commonly filed against plans serviced by […]Read More
Duke University Lawsuit
In this suit filed in August 2016, the federal court judge has recently decided the plausibility of several claims, allowing the following to move forward: Plan fiduciaries failed to engage in a “prudent and loyal” process for recordkeeping selection. Use of four recordkeepers instead of one subjected participants to the same services for a higher […]Read More