Benefits & Executive Compensation News

ABB Breached Its Duties by Not Monitoring
Fidelity’s Recordkeeping Fees, Court Decides

April 3, 2012, 4:00 AM

Following a nearly monthlong bench trial, the U.S. District Court for the Western District of Missouri ruled March 31 that manufacturing company ABB Inc. breached its fiduciary duties by failing to monitor pension plan recordkeeping fees it paid to Fidelity Management Trust Co. (Tussey v. ABB Inc.).

The decision marks one of the few 401(k) plan fees cases that has reached a decision on the merits. Many of the cases have reached settlement, or have stopped at the summary judgment stage.

Judge Nanette K. Laughrey found in favor of ABB’s 401(k) plan participants on a number of claims....

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