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Compliance May 19, 2009
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.
Reported by Fred Schneyer
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 .