Welcome

Case: Pension Plans/Fund Yields (5th Cir.)

July 21, 2021, 10:56 AM

Participants in American Airlines Inc.'s 401(k) plan lack standing to bring claims against the company and its affiliated credit union to challenge a low-yield fund and the credit union’s handling of plan assets, the Fifth Circuit ruled. Plan participants failed to show they would have earned higher returns if the fund wasn’t in the plan, the court said. And there’s no clear connection between the credit union’s alleged mismanagement and the challenged rate of return, the court said. The lawsuit seeks to represent about 20,000 401(k) participants who invested in the credit union fund. Participants say the fund, which held ...

To read the full article log in.

Learn more about a Bloomberg Law Subscription.