The bank also agreed to continue funding matching contributions to its 401(k) plan in the form of cash or cash equivalents for a period of time.
Tag: retirement plan participant lawsuits
The same group of plaintiffs previously filed a lawsuit against John Hancock with similar allegations and a similar result.
The court said the plaintiffs claim that Fidelity agreed to overly conservative investment guidelines in a failed effort to lock up all wrap coverage so that its competitors would not be able to obtain such coverage made little sense.
Relying on standards set forth by the Supreme Court in Fifth Third Bank v. Dudenhoeffer, an appellate court affirmed a district court’s dismissal of the case.
The complaint calls out the use of United of Omaha-branded mutual funds and target-date funds, as well as a guaranteed fund managed by United of Omaha.
Plan fiduciaries have been charged with breaching their fiduciaries duties under ERISA by selecting more expensive share classes of investments than were available to the plan.
In a statement, Cammack said, “We believe the claims have no merit and will be vigorously defending them.”
While a federal district judge had dismissed some claims last fall, the introduction of a new plaintiff in the case adds them back.
The lawsuit alleged Great-West Life & Annuity Insurance Company breached its fiduciary duty of loyalty under ERISA Sections 502(a)(2) and (3)—namely by setting predetermined interest rates artificially low and charging excessive fees in order to increase its own profits from the sale and servicing of the Great-West Key Guaranteed Portfolio Fund.
The judge addressed arguments related to commonality of 401(k) participants in the suit.
This case was filed against NYU Langone Hospitals, NYU Langone Health Systems, the retirement plan committee, and several named defendants.