Benefits & Executive Compensation News

Court Awards $15.2 Million in Fees, Costs
After $36.9 Million Fiduciary Breach Award

Nov. 5, 2012, 5:00 AM

The U.S. District Court for the Western District of Missouri Nov. 2 awarded more than $15 million in attorneys’ fees and costs after 401(k) plan participants prevailed in their fiduciary breach class action alleging that ABB Inc. paid excessive fees to Fidelity Management Trust Co. (Tussey v. ABB Inc., W.D. Mo., 2:06-cv-04305-NKL, 11/2/12).

The court ruled March 31 that ABB breached its fiduciary duties by failing to monitor pension plan recordkeeping fees that it paid to Fidelity (52 EBC 2826; 64 DLR A-5, 4/3/12). The court ordered ABB to pay $35.2 million for its...

To read the full article log in. To learn more about a subscription click here.