Paychex is fighting a lawsuit by a participant claiming their distribution check was stolen in New York state court.
Wisely, Paychex is trying to move the case to Federal court since this is an ERISA matter and a federal question.
In the state case, Dylan Handy, has claimed fiduciary breach violations by a Paychex, which was third-party administrator to the retirement plan offered by Handy’s former employer, Elm Street Technology LLC.
Handy claims that checks for his entire $116,125.45 401(k) account balance was intercepted in the mail on the way to his rollover account provider, then altered and the assets deposited into someone else’s account.
Handy’s state complaint seeks damages of $383,214, plus fees, costs and interest.
Only problem is that Paychex isn’t a fiduciary.
