Skip to main content

You are here

Advertisement

Fiduciary Governance

A new suit claims that the decision to retain proprietary funds in the 401(k) was “polluted by self-interest,” driven by a “blind preference” and that “defendants’ favoritism has led to the payment of excessive investment management fees. This time the plaintiff is current participant Sandy... READ MORE
There’s an old saying that when you assume… well, here are some assumptions that can create real headaches for retirement plan fiduciaries. Assuming that the Worst-Case Deadline for Depositing Participant Contributions Is the Deadline for Depositing Participant Contributions The legal... READ MORE
A case that hinged on the determination of fiduciary status based on control of plan assets—has been decided—again—in favor of the defendants.  The original suit (Rozo v. Principal Life Ins. Co., S.D. Iowa, No. 4:14-cv-00463-JAJ-CFB, 5/12/17), was brought by plaintiff Frederick Rozo[1] on behalf... READ MORE
Auto parts maker GKN North America Services Inc. managed to fend off some, but not all, claims in an excessive fee suit involving its use of Prudential’s GoalMaker product. The suit began in October 2021 when plaintiffs Jeffrey Parker, Donald B. Losey, and Shelley Weatherford filed[1] on behalf of... READ MORE
A federal appellate court took another look at an excessive fee case it had dismissed—and found nothing in a recent Supreme Court decision to change its mind. It was, in fact, the same appellate court (the Seventh Circuit) that had its judgement in the Hughes v. Northwestern University decision in... READ MORE
ERISA’s anti-alienation provisions generally serve to protect/shield retirement assets from garnishment—there is, however, an exception—and Evan Greebel just found out the hard way. In 2017, Evan Greebel was convicted of Conspiracy to Commit Wire Fraud and Conspiracy to Commit Securities Fraud as... READ MORE
A lawsuit challenging the Labor Department’s subsequent guidance/application of the so-called fiduciary rule has some support from the American Council of Life Insurers (ACLI). As noted in the filing, the ACLI was one of the lead plaintiffs in the Fifth Circuit decision that vacated the 2016... READ MORE
Despite surveys to the contrary, a new study finds that overall interest in ESG strategies by participants is “relatively weak” and “driven by naïve diversification.” The difference may, of course, be attributed to the difference between what individuals say—and what they actually do. Unlike... READ MORE
A recent report—and a new wave of litigation—reminds us that all target-date funds are not designed the same.  We all know that target-date funds are different, even if their names sometimes suggest otherwise.  Different management teams both set and monitor asset allocations—allocations that can... READ MORE
ADP got something of a split decision in an excessive fee case—with a federal judge allowing claims regarding high record-keeping fees and expensive investments to proceed—but culling claims about the use of participant data. The Suit The suit was filed in mid-May 2020 in the U.S. District Court... READ MORE
Capozzi Adler PC has found another $1 billion 401(k) plan with “astronomical” fees in which “high recordkeeping fees” and underperforming target-date funds left participant accounts “languishing” in the plan. The target this time is Marmon Holdings, Inc., a Berkshire Hathaway company, which... READ MORE
The fiduciaries of yet another multi-billion dollar 401(k) has been sued for an alleged breach of its fiduciary duty—ostensibly for causing the plan to pay “unreasonable and excessive fees for recordkeeping and other administrative services”—including a new type of allegation. This time it’s the... READ MORE
A qualified plan may invest in loans to third parties — loans other than those to a plan participant. There are compliance issues to consider, however, when a plan enters into such a transaction, or when a plan holds third-party loans as plan assets, and the IRS has updated the discussion on its... READ MORE
The flurry of lawsuits unleashed on holders of the BlackRock LifePath target-date funds is not without precedent — but it’s surely a head scratcher. I’m referring, of course, to the recent swarm of lawsuits challenging nearly a dozen of the nation’s largest 401(k) plans and their decision(s) to... READ MORE
A federal judge has affirmed a $1.5 million judgment against Schlichter Bogard & Denton LLP and Schneider Wallace Cottrell Konecky LLP for their role in bringing a “reckless” excessive fee suit. Back in September 2020, determining that the decision to pursue litigation was “objectively... READ MORE
The Department of Labor’s Employee Benefits Security Administration (EBSA) has announced that it is seeking nominations for open positions on the Advisory Council on Employee Welfare and Pension Benefit Plans.  More commonly known as the ERISA Advisory Council, the Council’s duties are to advise... READ MORE
L Brands, parent company of Bath & Body Works has come to terms with the plaintiffs in a 401(k) excessive fee suit.  The suit—which had been filed in late 2020 by Shepherd, Finkelman, Miller & Shah LLP and Goldenberg Schneider LPA on behalf of participants in the $1.5 billion plan—had... READ MORE
Another large 401(k) plan has been sued for a breach of fiduciary duty involving excessive fees for recordkeeping—and managed account services it says were worth nothing. This one has been filed in the US District Court for the Northern District of Illinois by one Ryan K. Gosse, individually and... READ MORE
Claiming that the plan fiduciaries “…employed a fundamentally irrational decision?making process (i.e., inconsistent with their duty of prudence) contrary to basic economics and established investment theory”—a new suit involving the BlackRock LifePath target-date funds has been filed. The suit—... READ MORE
In a case that has lumbered around since a 2017 embezzlement by Vantage Benefits Administrators, a custodian has finally been able to clear its name. The action followed an Oct. 31, 2017 raid by the Federal Bureau of Investigation on the offices of Vantage Benefits Administrators “amid concerns... READ MORE

Pages