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ABB Fiduciaries Lose Appeal Over 401(k) Plan Investments

March 14, 2017, 4:00 AM

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...

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