Construction Co. Fights ERISA Suit Tied to Covid-19 Market Drop

A Rhode Island construction company asked a federal judge to dismiss an unusual lawsuit claiming it violated ERISA by adopting a “special valuation” date for its 401(k) plan that allegedly forced employees to lock in losses from the Covid-19 market downturn.

Behan Bros. Inc. says its retirement plan administrator acted appropriately and within its discretion when it required three former employees who requested distributions from their retirement accounts to take those distributions using a special valuation date of April 30, 2020, instead of the plan’s standard valuation date of Dec. 31, 2019. This was a reasonable step justified by the ...