Benefits & Executive Compensation News

National Indemnity Wins 401(k) Fight Over Sequoia Investment (1)

June 19, 2019, 5:11 PMUpdated: June 19, 2019, 8:59 PM

National Indemnity Co. convinced a federal judge it didn’t breach its duties of prudence and loyalty in offering the Sequoia Fund as an investment option in its 401(k) plan.

National Indemnity workers claimed their employer ran afoul of the Employee Retirement Income Security Act by keeping the fund in its portfolio even as the market value of one of its major offerings, Valeant Pharmaceuticals, imploded.

National Indemnity’s plan committee met regularly to review its investments, including those in the Sequoia Fund, Judge John Gerrard said June 18 for the U.S. District Court for the District of Nebraska. The committee’s minutes...

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