About 300,000 employees sued FBG for mismanaging their benefit plans by collecting "ill-gotten profits" from their retirement, health, and fringe-benefits plans.
Retirees claim that AT&T selected a "risky" insurer to conduct the $8.05 billion transfer of plan assets, but the company claims it is not responsible for a decision made by its independent fiduciary.
With careful planning, corporate leaders can often avoid substantial tax liabilities when they make a former captive's assets available to meet the future business needs of related entities.