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Litigation Developments

A review of the litigation environment and ongoing class action lawsuit and settlement news occurring in the retirement plan industry.

American Airlines Stable Value Lawsuit

This lawsuit alleged that American Airlines breached its fiduciary obligations by permitting more than $1 billion to be invested in the AA Credit Union Fund within the American Airlines defined contribution plan – a fund that plaintiffs claimed failed to outpace inflation. The case settled; however, the federal judge reviewing the $8.8 million settlement does […]

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Starwood Hotels

A participant in the Starwood Hotels 401(k) Plan has filed a lawsuit against Starwood Hotels & Resorts Worldwide, Inc. on several counts, including excessive fees, particularly with respect to index fund offerings in the Plan that were “seven times” more expensive than reasonably priced comparable funds and failure to offer a stable value fund option […]

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Franklin Templeton Case

Plaintiffs in this class action case allege that Franklin Resources, Inc., the asset management firm operating under the name Franklin Templeton Investments, and those individuals overseeing the 401(k) plan, breached their fiduciary duties under ERISA through the selection of expensive, poor performing proprietary funds instead of lower cost, better performing funds. In so doing, Franklin […]

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