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Old Dominion class action overview:
- Who: A participant in the Old Dominion 401(k) Retirement Plan is suing Old Dominion Freight Line Inc.
- Why: The plaintiff says the plan was mismanaged, costing millions in retirement savings.
- Where: The Old Dominion class action was filed in a North Carolina federal court.
A participant in the Old Dominion 401(k) Retirement Plan is suing Old Dominion Freight Line Inc. alleging the plan was mismanaged, costing millions in retirement savings.
Plaintiff Harvey L. Davis filed a class action complaint against Old Dominion Freight Line Inc. Nov. 18 in a North Carolina federal court, alleging violation of the Employee Retirement Income Security Act (ERISA).
Davis filed the lawsuit in relation to the Old Dominion 401(k) Retirement Plan.
According to the lawsuit, the plan’s administrators selected and retained high priced investments when identical investments were available to the plan at a fraction of the cost.
“Defendant’s imprudence caused the Plan and its participants to wrongfully lose roughly $3 million in retirement savings over the course of the relevant time period,” Davis alleges.
“Furthermore, unless this action moves forward, Plan participants will likely continue to wrongfully lose retirement savings to excessive fees and waste.”
Old Dominion retirement plan managers breached fiduciary duty, class action alleges
Old Dominion’s mismanagement of the plan constitutes a breach of the fiduciary duty of prudence, Davis says. As of December 2021, the plan had $2,019,344,763 in assets and 24,033 total participants.
Davis says the impact of excessive fees on employees’ and retirees’ retirement assets is dramatic.
The U.S. Department of Labor has noted that a 1% higher level of fees over a 35-year period makes a 28% difference in retirement assets at the end of a participant’s career, he says.
“Defendant’s actions were contrary to actions of a reasonable fiduciary and cost the Plan and its participants millions of dollars.”
Davis looks to represent any person who was participants or beneficiaries of the plan, at any time between Nov. 18, 2016 and now.
He is seeking certification of the class action, an order to make the defendant personally liable to make good to the plan all losses resulting from breach of fiduciary duties, a reform of the plan, fees and costs.
Meanwhile, General Mills has also been hit with a class action lawsuit alleging it breached its “duty of prudence” that it owed to retirement plan holders by not removing a high-cost recordkeeper that caused the plan to pay “excessive” recordkeeping fees.
What do you think of the allegations in this Old Dominion case? Let us know in the comments!
The plaintiff is represented by Matthew Norris J. of Norris Law Firm PLLC.
The Old Dominion Freight Line class action lawsuit is Harvey L. David, et al. v. Old Dominion Freight Line Inc., Case No. 1:22-cv-00990 in the U.S. District Court for the Middle District of North Carolina.
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