Radio Shack Fiduciary Breach Case Plaintiffs Seek Class Action Nod

May 19, 2009 (PLANSPONSOR.com) - Lawyers representing plaintiffs alleging a fiduciary breach in the operation of the RadioShack 401(k) have asked a federal judge to certify the suit as a class action to potentially represent as many as 13,000 current and former employees.

The suit against the electronics retailer alleges the breach was committed by the company using Putnam mutual funds as investment options even though “those funds were overpriced and underperforming and were selected to reduce defendants’ expenses rather than for their merit.”

Plaintiffs allege the company violated the Employee Retirement Income Security Act (ERISA), and named corporate officials and the 401(k) administrative committee members as defendants (see  RadioShack Slapped with Co. Stock Fiduciary Breach Lawsuit  

The proposed class would be made up of current or former employees who participated in the plan and invested in a Putnam fund since May 2001.

The plaintiffs’ document requests that U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas appoint three law firms as co-class counsel representing the plaintiff-participants. The class action request is available  here .

 

 

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