Eighth Circuit Court of Appeals Has Reversed the Dismissal of Wal-Mart 401k Fee Case
SEATTLE, WA, November 25, 2009 -- Keller Rohrback L.L.P. (www.erisafraud.com) today announced that on November 25, 2009, the Eighth Circuit Court of Appeals reversed and remanded a decision by the district court for the Western District of Missouri that had dismissed, in October of 2008, Plaintiff Jeremy Braden's ERISA class action lawsuit filed on behalf of a class of participants and beneficiaries of the Wal-Mart Profit Sharing and 401k Plan. Mr. Braden's Complaint alleges that excessive fees associated with the Plan's ten mutual funds resulted in losses of tens of millions of dollars in retirement savings, and that these funds -- all retail off-the-shelf funds rather than lower-fee institutional class funds, most of which charged 12b-1 fees, and all of which paid revenue sharing to the Plan's trustee Merrill Lynch -- were selected as a result of a flawed process that was influenced by the kickbacks paid to Merrill Lynch and that their selection was accompanied by a secret side deal to conceal these incentives.
The Eighth Circuit opinion makes clear that Mr. Braden's allegations state claims under ERISA, a federal statute that protects retirement savings from waste or mismanagement. In particular, the Court stated that the totality of Braden's allegations raised a plausible claim that Wal-Mart's process was "tainted by failure of effort, competence, or loyalty."
According to Keller Rohrback partner Derek Loeser, "The Eighth Circuit opinion reinstating Mr. Braden's Complaint is an important step in our effort to pursue Mr. Braden's ERISA claims on behalf of Wal-Mart employees whose retirement benefits are at risk due to Wal-Mart's failure to act in the best interests of its employees. We look forward to the opportunity to make our case that Wal-Mart should have used its massive bargaining power for the benefit of its employees through the selection of reasonably priced funds, rather than retail off-the-shelf funds that are chosen because of financial incentives that benefit the Plan Trustee Merrill Lynch. The 401k plan has become the primary retirement vehicle for Americans and it is incumbent upon plan fiduciaries to think in terms of what is best for plan participants not what is best for financial institutions that profit from the plans."
About Keller Rohrback
Keller Rohrback is one of America's leading law firms handling retirement plan litigation. We are committed to helping employees and retirees protect their retirement savings. Keller Rohrback serves as lead and co-lead counsel in numerous class action cases, including cases against Enron, WorldCom, HealthSouth, Countrywide, and Merrill-Lynch. Keller Rohrback has successfully provided class action representation for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
###
Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
