The investigation concerns whether administrators breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) by investing and/or continuing to invest assets in company stock when it was not a prudent investment for participants’ retirement savings. At one time, approximately 13% of the participants’ assets were held in Company stock.
According to the announcement, the investigation concerns improper behavior that harmed current and former employees that invested in the 401(k) plan. Specifically, it has been announced that the Attorney Generals for New York, Florida, and Virginia have filed suit accusing the company of overcharging state and other pension funds on foreign exchange fees and defrauding customers in the foreign exchange markets (see BNY Mellon Sued by U.S. and NY).On the same day, the New York-based law firm of Harwood Feffer LLP launched an ERISA investigation (see BNY Mellon Now Targeted by ERISA Investigation).
« REITs Outperform S&P 500 in 2011