As in past cases taken up by Jerry Schlichter, lead attorney for some 50,000 potential plaintiffs being represented by Schlichter, Bogard and Denton, a new lawsuit argues employees unnecessarily lost millions after plan officials and provider partners mismanaged their hard-earned retirement dollars.
The complaint, Pledger, et al., v. Reliance Trust Company, et al., was filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division. Putting a somewhat different spin on retirement plan litigation than the 2015 Supreme Court case Tibble vs. Edison, also argued by Schlichter, it suggests Insperity breached its fiduciary duties by causing the plan participants to pay millions of dollars in excessive recordkeeping fees to Insperity’s proprietary subsidiary, Insperity Retirement Services.
Plaintiffs further argue the plan’s discretionary trustee, Reliance Trust, also breached fiduciary duties “concerning its imprudent investment decisions, including the decision to offer its own proprietary investments.”
“These alleged breaches substantially reduced the retirement assets of the plan participants,” Schlichter says. “The excessive investment management and recordkeeping fees, as well as the performance losses from investing in overly expensive funds, cost participants millions of dollars of their retirement savings.
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