The Employee Retirement Income Security Act of 1974, or ERISA, was enacted to protect the retirement plans that employees participate in through their employer, union or other institutions, including 401(k), healthcare and disability plans. Under ERISA, employers who administer employee retirement and benefits plans are fiduciaries who must act prudently and in the best interests of employee participants. Employer companies and plan administrators who breach their duty of loyalty, act in their own self-interests and place those interests above those of the plan and employee participants are liable under ERISA for any resulting plan losses.
The fiduciary duties owed by employers and plan administrators apply equally to all plan investments and assets. AF&T represents plan participants in the prosecution of ERISA claims arising from plan investments in company stock. In particular, these claims arise when employers choose to invest, or require the investment of plan assets in their own company stock, while at the same time engaging in wrongful conduct that cause the stock price per share to be artificially inflated. Under the heightened protections of ERISA, such investments are deemed imprudent and any resulting losses to the plan are recoverable.
If you participate in a company retirement plan that lost money due to a decline in your company’s stock price and would like to speak confidentially to one of our attorneys about potential ERISA claims, please contact us at 1-800-440-8986, (212) 279-5050 or firstname.lastname@example.org.