Coriant agreed to pay $1 million to resolve claims it violated its fiduciary duties under ERISA while administering its 401(k) plan. Coriant was an optical telecommunications company that was acquired by another company in 2018.
The settlement benefits participants of the Coriant 401(k) plan who experienced a loss due to liquidation at market value of their Gibraltar Guaranteed Fund (GGF) investments. Coriant invested a large sum of retirement funds into GFF investments. However, Coriant allegedly terminated its 401(k) plan and liquidated participants’ GGF investments without providing proper notice.
Apparently, participants were forced to liquidate their investments at market value as opposed to book value — causing over $2 million in monetary losses.