Fidelity Management and Trust Company
Shapiro Haber & Urmy LLP has been appointed co-lead counsel in the consolidated class action against Fidelity Management & Trust Co. in Massachusetts federal court on behalf of participants in 401(k) plans for Bank of America, EMC Corp. and Safety Insurance Co, and all those similarly situated. The class action alleges that Fidelity misused the plans’ “float income” by temporarily investing it for its own benefit, in violation of the Employee Retirement Income Securities Act. The suits raise allegations that Fidelity and its subsidiaries generated extra income when plan assets were placed in interest-bearing accounts, pending investments or withdrawals of the assets. An article published by Law360 provides further information about the class action lawsuits.
The cases have been consolidated as In Re Fidelity ERISA Float Litigation, 1:13-cv-10222 in the United States District Court for the District of Massachusetts.
Xerox Retirement Plan Litigation
Shapiro Haber & Urmy LLP represents a former employee of Xerox Corp. who is seeking to represent a class of other similarly situated Xerox employees who participated in the Xerox Retirement Income Guarantee Plan (the "Plan"). The United States District Court for the Western District of New York has already ruled in favor of approximately 100 individual Xerox employees and held that the Plan administrators violated ERISA's anti-cutback rules (which makes it unlawful to reduce accrued pension benefits) when it calculated benefits for those plaintiffs under the Plan. Despite the Court's expectation that Xerox would apply its rulings to all similarly situated plan participants, Xerox has refused to do so. For that reason, Shapiro Haber & Urmy LLP has sought to intervene in the Frommert Action to obtain class-wide relief for all affected plan participants. The motion to intervene is currently pending.