Brodsky Smith represents shareholders who file ERISA class action matters against companies for violating their fiduciary duties in administering their retirement plans. The Employee Retirement Income Security Act (ERISA) was enacted by Congress in 1974, and its provisions govern the conduct of employers who sponsor 401(k) and other retirement plan accounts. ERISA imposes fiduciary duties of loyalty, prudence and prudent diversification of plan assets upon employers who sponsor retirement plans. When a 401(k) retirement plan allows participants to exercise control over the assets in their retirement account, ERISA requires the employer to provide certain informational disclosures to its retirement plan participants and further requires the employer to offer a broad range of diversified investment options. Part of the regulations also permit an employer to offer company stock as an investment option.
If an employer provides for its own publicly traded stock as an investment option in its retirement plan, there is a risk that its workers can suffer an enormous loss in a volatile market. If the company stock suffers a sustained downward correction, the worker may lose his or her income stream (by losing their job) and also lose significant value in their retirement account. Under ERISA, employees who suffer significant investment losses may sue the plan sponsor (their employer) for breach of fiduciary duty under the law. This type of litigation enables plan participants or beneficiaries to hold employers accountable and protect their 401(k) retirement plan.
The firm is co-lead counsel in SPX Corporation ERISA Litigation, (U.S.D.C. W.D. N.C. 04-cv-192). The firm was also co-lead counsel in the settling matter of Hanover Compressor Company ERISA Litigation (U.S.D.C. S.D. Texas H-02-0410) which achieved $1,775,000.00 for the class. Brodsky Smith currently serves as local counsel in the In re Loral Space Communications, Ltd. ERISA litigation pending in the Southern District of New York (03-CV-9729). The firm is also counsel in the Janus Fund ERISA Litigation; Goodyear ERISA Litigation, Polaroid ERISA Litigation and Delta Airlines ERISA Litigation matters.
If you are aware of or suspect any practices that are or may be in violation of the securities laws, occurring now or at some time in the past, please contact us via phone at toll free 877-LEGAL90 (877-534-2590), by email at clients@brodsky-smith.com or by visiting our report a fraud link. Please also view our current case list on our site.