In a press release from their lawyers, the plaintiffs in the class action lawsuit allege that they were promised numerous benefits when their former company, Principal Financial Group’s residential mortgage lending business, was sold to American Home in 2003. Approximately 400 of the company’s employees went to work for American Home at that time.
The suit alleges that at that time, American Home, in writing, promised to honor their years of service with Principal towards the vesting requirements for their new 401(k) retirement savings plan. It also promised to contribute extra money to the plan to compensate the new workers for an additional retirement benefit they had with Principal.
The suit alleged that these written promises were not kept. Instead, they allege, the company extended vesting requirements and has not yet contributed extra amounts to the plan. The written promises were to be implemented by spring of 2004, the suit alleged.
The suit was filed in Suffolk County, New York.
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