Lubbock National Bank, the ESOP’s trustee, has also agreed to take steps that will ensure it fulfills its fiduciary obligations in the future.
Tag: ERISA Litigation
The court found plaintiffs failed to state a claim for relief based on ERISA’s duty to diversify and failed to state a claim for failure to engage in an adequate process for evaluating the prudence of continuing to hold the ConocoPhillips Funds.
In addition to a monetary payment, the university has agreed to structural changes to its 403(b) plans.
The 6th Circuit noted that Firestone Tire & Rubber Co. v. Bruch, in which an arbitrary-and-capricious standard of review is required by the court if the plan “gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan,” should have been used by the district court.
The suit challenges fees paid to provider TIAA.
An investigation conducted by the DOL found the past trustee had issued checks from the plan’s checking account to the House of Lights, himself and others for $1,308,862, which violated ERISA, for over two years.
Philips North America agreed to pay $17,000,000 to settle a 401(k) excessive fee suit one day after the complaint was filed.
A DOL investigation found the trustees used plan assets for businesses and properties owned by themselves and family members.
For one thing, the plaintiff argues the briefs filed in support of the University of Pennsylvania provide the university an argument word-count advantage.
The complaint says that instead of offering a stable value fund in its 401(k) plan, American Airlines offered the AA Credit Union Fund, which yielded “tremendously” poor returns throughout the relevant time period.
The lawsuit questions the selection of underlying investments for the Principal LifeTime Hybrid Collective Investment Funds, alleging Principal used proprietary investment vehicles, rather than other investment vehicles, and share classes with higher fees.
The 11th Circuit ultimately ruled that it is common sense to conclude that since a litigant can renounce his most basic freedoms under the United States Constitution, he is able to waive the protection of ERISA’s statute of repose.