Bloomberg Law
March 14, 2017, 4:00 AM

ABB Fiduciaries Lose Appeal Over 401(k) Plan Investments

Fiduciaries of ABB Inc.'s 401(k) plans might be on the hook for damages allegedly caused when they changed the plans’ investment options and moved assets to a target date fund (Tussey v. ABB, Inc., 2017 BL 73968, 8th Cir., 15-2792, 3/9/17).

The fiduciaries, who were held liable in 2015 for breaching their fiduciary duties under the Employee Retirement Income Security Act, escaped paying damages when a district court ruled that the participants failed to show how the fiduciaries’ actions caused them any harm. However, the U.S. Court of Appeals for the Eighth Circuit disagreed and March 9 reversed ...