ATTENTION 40(k) Committee Members and Investment Fiduciaries – a recent Class Action Complaint that retirement plan committee members should be aware of.
On May 26, 2020, a Class Action Complaint was filed in the United States District Court for the District of Minnesota against Land O’Lakes, Inc., the Board of Directors of Land O’Lakes, Inc., Land O’Lakes, Inc. Retirement Plan Committee, and John Does.
The allegations involved should be of significant interest to all committee members and investment fiduciaries. These include:
“failing to objectively and adequately review the Plan’s investment portfolio with due care to ensure that each investment option was prudent, in terms of cost; and
- “maintaining certain funds in the Plan despite the availability of identical or similar investment options with lower costs and/or better performance histories.”
“Defendants’ mismanagement of the Plan, to the detriment of participants and beneficiaries, constitutes a breach of the fiduciary duties of prudence and loyalty, in violation of 29 U.S.C. § 1104. Their actions were contrary to actions of a reasonable fiduciary and cost the Plan and its participants millions of dollars.”
Based on this conduct, Plaintiffs assert claims against Defendants for breach of the fiduciary duties of loyalty and prudence (Count One) and failure to monitor fiduciaries (Count Two).
This webinar will provide actionable steps that investment fiduciaries can take to defend themselves from similar actions. The discussion will not only review components of this case but answer specific questions regarding appropriate fiduciary behavior and actions that can be taken by committees to thwart claims similar to the Land O’Lakes Complaint.