New Areas for Retirement Fund Lawsuits
From the Desk of Jim Eccleston at Eccleston Law LLC:
According to the National Association of Plan Advisors 401(k) Summit, the new major areas for lawsuits include the failure of financial services firms to follow fee disclosure regulations, as well as arrangements where plan service providers have discretion over fund menus and employee stock ownership plans.
The trend is highlighted by a series of multimillion dollar settlements involving unreasonably high fees in retirement plans. Such was the case with Lockheed Martin Corp. and International Paper Co.There's also the employees of financial services firms who have sued their own employers, which happened at MassMutual and Ameriprise Financial Inc.
Those 401(k) fee lawsuits are beginning to trickle down market, panelist Gregory J. Marsh, director at Bridgehaven Financial Advisors, warned, and advisers are in a prime position to help plan sponsors take a closer look at their arrangements to protect themselves from suits.
Another area of concern for litigation includes employees owning too much company stocks in their plans, as well as scenarios where the plan's documents and investment policy are not consistent with what the plan's actual processes and investments.
The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.
Related Attorneys: James J. Eccleston
Tags: NAPA, Lockheed Martin Corp, International Paper, Ameriprise Financial