Olin Corp has won their ERISA case brought against them in the U.S. District Court for the Eastern District of Missouri.
The plaintiffs in the case used the same allegations in numerous other lawsuits filed against employers for alleged fiduciary breaches in the operation of their defined contribution retirement plans, brought by their attorney, the law firm Capozzi Adler.
The plaintiffs alleged that Olin failed to adequately monitor and control the plan’s recordkeeping costs and failed 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 performance. Olin moved for dismissal, arguing that the plaintiffs didn’t allege “meaningful benchmarks” against which to evaluate the defendant’s fiduciary process and did not allege facts supporting an inference that they had breached their fiduciary duties. The Court threw out the case.
The ruling by the Court also pointed out that courts throughout the country have routinely rejected the 2019 NEPC survey cited by plaintiffs as a sound basis for comparison because it lacks in detail.
When it comes to ERISA litigators, not everyone can be Jerry Schlicter. Saying a plan is expensive isn’t enough. True benchmarking and an indication of some fiduciary breach are needed in a complaint.
