The aerospace firm violated its fiduciary duties by using an in-house service provider and affiliated target-date funds, according to the class-action lawsuit filed by plan participants.
Following a lawsuit alleging “wrongful use” of 401(k) forfeited funds, the banking giant is now being sued by employees over $2.4 million in plan assets that were invested in an in-house stable-value fund.
A Texas judge has ruled that retirement fund managers may consider environmental, social, and corporate governance factors when choosing investment funds.
This emerging trend demonstrates forfeiture cases are no longer nuisance lawsuits. Top law firm Schlichter Bogard, which has been representing many plaintiffs in recent 401(k) excessive fee lawsuits, is representing the telecommunications company’s plaintiffs.
The lawsuit, like many 401(k) lawsuits filed by employees over the past year, challenged HP’s decision to use “forfeitures” to reduce employer contributions rather than to pay administrative costs.
About 70% of the 401(k) plan—nearly $2 billion—was invested in one fund, when “much cheaper” versions of this investment were available, allege employees in the class-action lawsuit.
The class-action lawsuit, filed on behalf of 60,000 plan participants, alleges that the airline failed to replace a “chronically underperforming” large-cap fund holding more than $2 billion in retirement plan assets.
The ERISA Industry Committee, along with two other industry groups, is seeking the dismissal of the drugmaker’s PRT class-action lawsuit over the transfer of its pension plan to Athene Annuity, alleging a breach of fiduciary duties.
The banking giant has been hit with a class-action lawsuit alleging it used retirement plan contributions from departing employees to “offset its employer contributions” rather than reducing plan administrative fees, violating ERISA.
