Having a retirement fund is essential for individuals who hope to leave work behind but remain financially stable during their golden years. Often, Tennessee workers have employer-funded retirement funds that allow them to accrue money for later use, but they can also create individual retirement funds. However, if a company offering 401(k) plans does not do right by its participants, class action litigation could result.
It was recently reported that individuals with Biogen’s $1 billion 401(k) plan have decided to move forward with litigation against the company. Apparently, the claimants believe that the company charged excessive fees and used more expensive share classes for investments rather than using its bargaining power to reduce costs. The lawsuit claims that the company violated the Employee Retirement Income Security Act by not acting in the participants’ best interests.
The report went on to state that the mutual fund used by the plan sponsor had a cost that was much more expensive than similar plans. It also stated that that the company did not have a good faith explanation for using more expensive share classes. It was noted that Biogen had not responded to a request for comment at the time of the report.
ERISA violations can have significant effects on retirement fund holders, and those effects are typically to the holders’ detriment. If Tennessee residents believe that they have experienced losses due to such violations, they may want to consider their legal options. Class action litigation could help qualifying parties pursue the justice and compensation they deserve.