Why are ERISA cases important?
Without pension fund class actions, large corporate defendants would be able to cause small amounts of harm over a large group of investors and employees without any risk of monetary penalty.
Questions about ERISA Lawsuits
Last year there were a record number of 401(k) lawsuits due to excessive fund fees, low returns and limited investment options. Class action lawsuits may be necessary if your employer is not looking after your retirement plan carefully, and fairly distributing your hard-earned money.
The fee structure of any retirement plan is critical, particularly the expense ratio. Many funds have an expense ratio of 0.20% or less, while others charge above 1%, which will quickly add up and limit the capital growth expected.
Some attorneys have alleged that companies engage in revenue sharing, where they may overcharge plan participants and that money is filtered to the plan administrator, recordkeepers, brokers, or financial advisors. These hidden overcharges will erode returns.
An Investment Plan Class Action is a lawsuit usually brought by an individual on behalf of all other similarly situated individuals in order to resolve a financial plan dispute in an efficient format.
If you are part of a pension fund or retirement plan and believe your fund managers are negligent in giving plan members the best investment advice or options, contact an attorney to review.
By filing a claim following the loss of an investment due to financial advisor negligence, you have a chance to recoup your losses and get compensated for poor 401 (K) or pension fund management.
Fund managers and financial advisors have a duty to their plan members to seek the highest returns and lowest management fees available. If you suspect your fund managers are “churning fees” or putting you into funds for self interests, you may have a viable lawsuit.
If you pay a third-party plan administrator it is important to beware of the fees you are being charged.
If your 401(K) has lost value due to excessive management fees, you may have a viable case, and should contact a legal professional. Your employer’s HR should be monitoring any fund fees that seem out of the ordinary.
Your employer is responsible for maintaining your 401(k) retirement plan, and explaining the details of the plan. Employers are also responsible for choosing a vendor and how the fees will be charged to the plan. If an employer fails to maintain and monitor a 401(k) program, a poor-returning retirement plan may result and can be grounds for filing a 401(k) mismanagement lawsuit.
A fiduciary duty for a retirement fund manager is an obligation to act in the best interest of the plan members.
If your pension fund, 401 (K) or retirement plan is underperforming the market or experiencing unusual losses, you have the right to ask questions. The Lyon Firm can review whether your fund is properly managed and has reasonable investment fees.
An L Brands 401(k) plan participant filed a class action lawsuit against the retailer, alleging the company breached its fiduciary duties in the management of the retirement plan.
The lawsuit claims L Brand, the parent company of Bath & Body Works and Victoria’s Secret, breached its duties under the Employee Retirement Income Security Act (ERISA) with excessive plans fees and choosing more expensive share classes of its investments instead of less expensive options.
The suit said the L Brands Inc. 401(k) Savings and Retirement Plan breached its duties by paying excessive fees to Wells Fargo from 2014 to the present. Plaintiff also allege the company breached its financial duties by not offering institutional share classes of some of its investment options. The L Brands Inc. 401(k) Retirement Plan has around $1.6 billion in assets, according to a filing from last year.
DeMoulas Super Markets Inc., the company behind the New England grocery chain Market Basket, will pay $17.5 million to settle a retirement plan class action in which plaintiffs claimed it forced employees to invest retirement savings in a fixed-income fund that earned small returns and overall provided little opportunity for growth. The settlement requires DeMoulas to limit the amount of plan assets held in cash and modify the plan’s investment policy to increase the annual profit target.
How to File Investment Loss Lawsuits
Filing a Investment Plan Class Action lawsuits is a complex and serious legal course and can carry monetary sanctions if proper legal course is not followed. The Lyon Firm is dedicated to assisting retirement plan members and plaintiffs work toward a financial solution to assist in compensating for investment losses.
We work with law firms across the country to provide the most resources possible and to build your case into a valuable settlement. The current legal environment is favorable for consumers involved in pension fund class actions, 401 (k) plan and financial advisor negligence claims.