Benefits & Executive Compensation News

Allstate Dings Ex-Worker’s 401(k) Suit, Says Standing Is Lacking

Jan. 12, 2021, 6:17 PM

A lawsuit accusing Allstate Corp. of mismanaging its $5 billion 401(k) plan can’t move forward because the former employee who filed suit cashed out of the plan in 2019 and lacks standing to maintain an ERISA class action, the insurer told a federal judge in Chicago.

The Employee Retirement Income Security Act doesn’t authorize lawsuits by employees who have received a final distribution of vested benefits under a 401(k) plan, Allstate said in a motion to dismiss filed Monday in the U.S. District Court for the Northern District of Illinois. Plaintiff Katherine Cutrone was no longer a plan participant or...

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