ERISA 401k Lawsuit Settlement Reached in Two Cases with Safeway

UPDATE:

• The Court granted final approval to this settlement July 19, 2021.
• Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

Safeway grocery store chain has agreed to settle an ERISA 401k lawsuit filed by a former employee and another one filed by a current employee.

ERISA is the Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most of the voluntarily set retirement and health plans at businesses.

According to the U.S. Department of Labor, ERISA requires plans to provide fiduciary responsibilities for those who manage and control plan assets. Participants who believe their plans have been mismanaged may have a right to sue for benefits and breach of fiduciary duty.

According to California federal court records, current and former Safeway employees each filed lawsuits against the big grocery store chain alleging different types of misconduct with the company’s retirement plan.

One plaintiff claimed her retirement plan was mismanaged because the committee members responsible for the plan didn’t understand or weren’t familiar with the investment policy statement or other pertinent documents integral to running the plan responsibly.

The plaintiff alleged the incompetence of the committee led to poor record-keeping of fees and to the continuation of investments being left to languish in underperforming fund choices.

The other 401k lawsuit alleged that a class of funds known as JP Morgan Asset Management target date funds were chosen for 401k investments even though the funds were only available for exceptionally high fees.

Neither ERISA 401k lawsuit settlement has released details, but Safeway did express that the company would not fight any attempt to certify a class in either case.

Reasons to File an ERISA 401k Lawsuit

According to the Department of Labor, a 401k plan’s fiduciaries include plan trustees, plan administrators and members of a plan’s investment committee. Their primary job is to ensure the plan is run “solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses.”

Fiduciaries are tasked with diversifying the plan’s investments to minimize the risk of huge losses, and must adhere to the terms of the plan’s documents as long as the terms are not inconsistent with ERISA law.

In addition, plan committee members have to avoid any conflict of interest. They cannot secure 401k related transactions that benefit themselves or anyone other than the plan participants and investors.

If a fiduciary is found to mismanage funds or betray the principles of proper conduct in relation to the plan, the fiduciary might be held personally liable to pay back any losses the plan has suffered or to restore profits reaped through the inappropriate use of plan assets. A court may remove any fiduciary from the plan committee if the court determines a breach of duties under ERISA was committed.

A recent article in Forbes said fees can cost the average two-income household more than $150,000, potentially reducing retirement savings by a third.

California residents who participate in a 401k plan and work for a company that employs 500 or more employees may qualify to participate in our investigation into possible ERISA violations throughout the state.

The ERISA 401k Lawsuits are Case No. 3:16-cv-03994, and Case No. 3:16-cv-04903, both in the U.S. District Court for the Northern District of California.

Join a Free California 401k Class Action Lawsuit Investigation

You may qualify for this 401k class action lawsuit investigation under the following circumstances:

• You live in California;
• You are employed by a company with 500 or more employees;
• You participate in a 401k plan or another pension plan; and/or
• You have been the victim of an ERISA violation such as excessive fees, mismanagement, breach of fiduciary duty, and/or failure to adequately fund.

If you are unsure if you’ve been the victim of any 401k violations, an experienced retirement plan attorney can assist you.

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This article is not legal advice. It is presented
for informational purposes only.