ERISA denotes the Employee Retirement Income Security Act of 1974, an Act designed to protect participants of investment plans and 401(k) plans by ensuring those responsible for managing such plans and investing on behalf of plan participants do so with the best interests of participants.
It was alleged that the defendants responsible for the employee stock plan allowed the investment of Plan assets in National City common stock or National City Stock Fund units during a time when they knew, or should have known that the investments they were making were imprudent. Further, according to a release from the US District Court for the Northern District of Ohio, Eastern Division, the defendants are alleged to have breached their fiduciary duties by allowing the Plan to invest in Allegiant Funds in violation of ERISA.
The defendants deny any wrongdoing.
READ MORE EMPLOYEE STOCK OPTION LEGAL NEWS
A hearing is scheduled for November 30th in the US District Court for the Northern District of Ohio (Eastern Division) before US District Judge Solomon Oliver, Jr.
Any employee investing in an employee 401(k) plan or other ERISA pension plan (that is, protected under ERISA provisions) does so with the hope that prudent investments and management will yield the necessary funds for a comfortable retirement. Beyond that hope is the expectation, regardless of what the market does, that the plan will be managed prudently—with the confidence that if it is not, then ERISA benefits under the 1974 ERISA Act will prevail.