• Neal Shikes

“The Class Action Holiday Season.”


Class Actions I bring

To Fiduciaries of your plan

Glad tidings of litigation

And a happy New Year!

Fiduciary Litigation made its appearance during this holiday season as 4 new Class Actions were filed against the following institutions:

. Starwood Hotels & Resorts . Delta Air Lines . Fidelity Management Trust Co. . Putnam Investments

In aggregate, the following claims were made:

. Failure to make sure that Plan fees were reasonable . Failure to offer a Stable Value fund . Revenue sharing whereby kickbacks were made for including particular funds in the menu of investment choices . Incurring unnecessary management fees by offering passive index funds which held other passive index funds (double layer of fees) . Lower cost investment options were available; incorrect share class . Excessive record-keeping/administrative charges . Redundant investment options . Retained historically underperforming investment options . Excessive indirect compensation through revenue sharing . Poor performance in Stable Value Fund . Self-dealing

These claims seem to focus on performance outcome, fees, and compensation. The Fiduciary Relationship between a Plan Fiduciary and its Participants can be defined by the behaviors and duties that the fiduciary has for the participants. Interesting enough, I did not sense any motivations to focus on breaches of Fiduciary Duty via a lack of visible oversight and methodology as the causation of outcome.

#Litigation #ClassAction #401k #RetirementPlans

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