Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Matrix Trust Defeats Lawsuit Tied to Third-Party 401(k) Theft

Aug. 4, 2022, 4:08 PM

MBA Engineering Inc. lost its lawsuit seeking to hold benefit plan custodian Matrix Trust Co. liable in connection with a $2.2 million theft from MBA’s retirement plans by third parties, according to a federal court ruling from Texas.

MBA’s claims against Matrix are expressly barred by the terms the retirement plans and the parties’ custodial account agreement, Judge Brantley Starr of the US District Court for the Northern District of Texas held Wednesday. These documents indemnify and protect Matrix from liability and authorize Matrix to rely on instructions from the plan’s third-party administrator, Vantage Benefit Administrators Inc., Starr said.

MBA ...