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Compliance August 13, 2010
Law Firm Probes Drugmaker for 401(k) Missteps
A New York law firm is investigating whether fiduciaries of the GlaxoSmithKline 401(k) plan violated the Employee Retirement Income Security Act of 1974 (ERISA).
Reported by PLANSPONSOR staff
A news release from the Stull, Stull & Brody firm said it is looking into whether the company ran afoul of ERISA by not disclosing its true operating condition to participants and beneficiaries. Those disclosures included information about the safety of Avandia, a diabetes drug.
Other potential ERISA issues include offering GlaxoSmithKline ADRs as an investment option under the plans when it was not prudent to do so, and/or by allowing an imprudent overconcentration of company stock in the Company’s 401(k) plans.
The drug has been under government scrutiny since 2007 into allegations it increases risks of heart problems.
More information about the probe can be obtained by calling 800-337-4983 or via e-mail at ssbny@aol.com.