Bloomberg Law
Aug. 31, 2021, 2:19 PM

Construction Company Beats ERISA Suit Over Covid-19 Market Drop

Jacklyn Wille
Jacklyn Wille
Legal Reporter

A Rhode Island construction company defeated an unusual federal 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 Brothers Inc. acted reasonably when it calculated three retiring employees’ 401(k) distributions based on a special valuation date of April 30, 2020, and not the plan’s standard valuation date of Dec. 31, 2019, Chief Judge John J. McConnell Jr. of the U.S. District Court for the District of Rhode Island held Monday.

The special valuation date was justified by the extraordinary market ...

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