Benefits October 3, 2008

Stock Drop Plaintiffs Win Skirmishes in Fifth Third Case

October 3, 2008 (PLANSPONSOR.com) - Plaintiffs in a January 2005 stock drop and excessive fee case have won two legal skirmishes with a federal judge's rulings certifying the case as a class action and refusing a request to throw out their lawsuit.
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A news release from the Scott and Scott law firm said the rulings came in a suit filed byBenjamin Shirk seeking to represent participants and beneficiaries in theFifth Third Master Profit Sharing Plan.The case charged the bank and a number of its executives with mismanaging the plan and breaching their fiduciary duties under the Employee Retirement Income Security Act (ERISA).

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Specifically, the suit alleges defendents breached their fiduciary duties by:

  • investing the plan’s assets in Fifth Third stock at a time when it was imprudent to do so;
  • making material misrepresentations about Fifth Third stock and failing to provide complete and accurate information to participants and beneficiaries;
  • failing to monitor those persons or entities who were charged with managing the plan and its assets; and
  • failing to avoid conflicts of interest with respect to the plan.

The plaintiffs also alleged the plan was charged excessive management fees – a claim the court refused to throw out in the recent rulings. The order refusing to dismiss the excessive fee allegations is here .

The bank was the target of a new stock drop case filed in mid-August by a Fifth Third employee in Florida (See Fifth Third Slapped with Stock-Drop Participant Lawsuit ).

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