Shell Oil and Fidelity are facing serious allegations of mishandling funds and failure to act in the best interests of employees who invested in a company retirement fund. The ERISA lawsuit asserts that Shell did not use its position to bargain for lower bookkeeping and management fees. They also allege that Fidelity prioritized its own financial gain through exorbitant penalties paid out of the retirement funds it was supposed to be managing.
According to claims made in the lawsuit, Fidelity used information gathered from Shell Oil about the plan’s participants for marketing purposes. They say the company obtained highly personal and sensitive information about them, including Social Security numbers, investment choices they’d made and more. They then used this information to aggressively cross-sell other products to plan participants. Like these plaintiffs, Tennessee employees also have to right to protect their financial future and retirement investments.
Fidelity categorically denies using these types of practices and plans to defend itself against these allegations. Shell is accused of mismanaging the retirement program by paying large sums of money out of the account without trying to secure managements services for a reasonable cost. Shell Oil has not responded to the claims made in the lawsuit.
When Tennessee employees pay into an employer provided and supported retirement fund, they trust that the employer will act in a prudent and diligent manner to use the money well and invest it wisely. When they allow other parties to have access to sensitive information or fail to protect the investments made by the employees, litigation may be appropriate and necessary. Employees may consider moving forward with an ERISA lawsuit.