Planning for retirement is something everyone should do to ensure peace of mind. Yet, sometimes those plans fail to work out for reasons beyond your control.
If those in charge of your ERISA-protected retirement plan do not do the job they are paid for, you may suffer the consequences. When you retire, you might not have the funds needed to support yourself in the manner you planned.
What is an ERISA lawsuit?
The Employee Retirement Income Security Act of 1974 (“ERISA”) is a federal law that protects participants in employer-sponsored benefits plans. Such plans include traditional pension plans (also known as defined benefit plans), as well as 401(k) and 403(b) plans, which are known as defined contribution plans. ERISA also covers certain employee health and welfare plans.
If you suspect that the 401(k) or 403(b) savings plan committee has breached their fiduciary duties, you may be able to take action. You do not need to show they have been stealing intentionally. Showing they made imprudent investment choices, claimed inapplicable exemptions, used out-of-date information, paid unreasonable fees and commissions, or miscalculated your retirement benefits may be enough.
How much money was recovered in the biggest ERISA cases of 2021?
Last year many people benefited from successful ERISA class action lawsuits. In 2021, courts ordered companies that sponsor retirement plans to pay a total of $3.62 billion in compensation to plan participants. This was double the amount awarded the previous year. Each of the top 10 cases resulted in a payout of more than $20 million. Here are the top 5 recoveries:
- Walgreen Co.: $300 million
- Exela Enterprise Solutions Inc.: $154 million
- Dignity Health: $100 million
- Ruane, Cunniff & Goldfarb, Inc.: $79 million
- Raytheon Co.: $60 million
How can I protect my rights under ERISA?
The way to bring these cases is through a class action. This means one lawsuit is filed on behalf of many people who have similar claims. After all, if an issue affects you, it will also affect your colleagues and anyone else who participated in the retirement plan. If you suspect that something is not right with your retirement plan, contact our experienced team of attorneys at 844-696-7492 for a free consultation, or click here to submit your info.
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving employee retirement plans, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, securities and investment fraud, wage theft and unpaid overtime, consumer protection, and dangerous and defective drugs and medical devices.