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Compliance May 19, 2009
RadioShack Plaintiffs Seek Class Action
Lawyers representing plaintiffs alleging a fiduciary breach in the operation of the RadioShack 401(k) have asked a federal judge to certify the suit as a class action.
Reported by Fred Schneyer
The suit would potentially represent as many as 13,000 current and former employees.
The suit against the electronics retailer alleges the company used Putnam mutual funds as investment options even though “those funds were overpriced and underperforming and were selected to reduce defendants’ expenses rather than for their merit,” the class action request stated.
Plaintiffs alleged the company violated the Employee Retirement Income Security Act (ERISA), and named corporate officials and the 401(k) administrative committee members as defendants (see “RadioShack Slapped with Co. Stock Fiduciary Breach Lawsuit’)
The proposed class would be made up of current or former employees who participated in the plan and invested in a Putnam fund since May 2001.
The plaintiffs’ document requests that U.S. District Judge Terry R. Means of the U.S. District Court for the Northern District of Texas appoint three law firms as co-class counsel representing the plaintiff-participants.
The class action request is available here.