Beacon/Madoff ERISA Litigation
In re Beacon Association Litigation (S.D.N.Y.): Cohen Milstein represented the trustees and participants of ERISA-covered employee benefit plans whose assets were invested by Beacon Associates LLC I and Beacon Associates LLC II (the “Feeder Funds”) in and lost money by investment the investment schemes of Bernard L. Madoff, Bernard L. Madoff Investment Securities, LLC. On March 15, 2013, the court granted final approval of a $219 million settlement to reimburse defrauded investors.
BlackRock 401(k) Retirement Plan Litigation
Baird v. BlackRock Institutional Trust Company, N.A. et al. (N.D. Cal.): Cohen Milstein successfully settled this certified class action, in which plaintiffs alleged that the BlackRock 401(k) plan administrators engaged in corporate self-dealing—restricting plan options to BlackRock’s own proprietary funds, and in many cases failing to provide the lowest cost versions of those funds. On November 3, 2021, the Court granted final approval of a $9.65 million settlement.
Dignity Health Church Plan Litigation
Rollins, et al. v. Dignity Health, et al. (N.D. Cal.): Cohen Milstein represented a certified class of defined benefit participants, who alleged that Dignity Health was improperly claiming that its pension plans were exempt from ERISA because they were “church plans.” As a result, it underfunded its plans by over $1.2 billion. In 2016, the Supreme Court agreed to hear arguments on consolidated church plan cases, and in June 2017, it reversed previous rulings and ordered plaintiffs, in this case, to file an amended complaint. On July 15, 2022, the Court granted final approval of a $100 million settlement.
ERISA Industry Committee v. Tobias Read
ERISA Industry Committee v. Tobias Read (D. Or.) Cohen Milstein represented the ERISA Industry Committee (ERIC) in a lawsuit against the Oregon Retirement Savings Board (ORSB). The lawsuit, filed in 2017, and dismissed by ERIC claimed that the process for exempting large employers from OregonSaves violated the Employee Retirement Income Security Act of 1974 (ERISA).
New York Life Insurance Company 401(k) Litigation
Krohnengold v. New York Life Insurance Company (S.D.N.Y.): Cohen Milstein represented employees and agents of New York Life Insurance in this certified class action against New York Life for allegedly mismanaging its 401(k) and engaging in corporate self-dealing and the prohibited transfer of employees’ retirement assets. Plaintiffs claim that New York Life impermissibly invested participants investments into a Fixed Dollar Account by default and improperly favored and included its own in-house investment funds in its plans, thereby earning New York Life and its affiliates windfall profits. On July 18, 2024, the Court granted final approval of a $19 million settlement – approximately 25% of the alleged losses.
T. Rowe Price 401(k) Litigation
Feinberg v. T. Rowe Price Group Inc. et al. (D. Md.): Cohen Milstein represented participants in the T. Rowe Price 401(k) plan, who alleged that plan fiduciaries violated ERISA, causing plan participants to pay millions of dollars in illicit fees. Plaintiffs alleged that T. Rowe Price only offered it’s own in-house investment funds in the 401(k), failed to offer the lowest cost versions of those funds, and failed to consider funds from other companies that offered lower fees or better performance. On July 6, 2022 the Court granted final approval of a $7 million settlement.
Triad Manufacturing, Inc. ESOP Litigation
Smith v. GreatBanc Trust Company, et al. (N.D. Ill.): Cohen Milstein represented participants and beneficiaries in the Triad Manufacturing ESOP who alleged that the ESOP’s trustees breached their fiduciary duties in connection with the sale of Triad Manufacturing to the ESOP. In September 2021, the Seventh Circuit, in a precedent-setting decision, cited an exception to the Federal Arbitration Act that permits a court to overrule an arbitration agreement if it blocks a party from being able to bring claims under federal law. On August 23, 2023, the Court granted final approval of a $14.8 million settlement and granted class certification.
Wells Fargo 401(k) Litigation
Becker v. Wells Fargo & Co., et al. (D. Minn.): Cohen Milstein achieved a $32.5 million settlement prior to class certification and expert discovery. On August 31, 2022, the Court granted final approval of the settlement, resulting in a recovery of 40% of estimated damages for the plaintiffs. The lawsuit alleged that Wells Fargo and its affiliates violated numerous provisions of ERISA by breaching their fiduciary duties and engaging in self-dealing transactions prohibited under ERISA.
World Travel ESOP Litigation
Ahrendsen et al. v. Prudent Fiduciary Services. et al. (E.D. Pa.): Cohen Milstein represented a certified class of employee stock option plan participants and beneficiaries who allege that the founders of World Travel and the ESOP trustees created the ESOP and then sold 100% of the employees World Travel stock to the ESOP at an above-market price, saddling it with over $200 million in debt. On June 22, 2023, the Court granted plaintiffs unopposed motion for class certification and final approval of a $8.7 million settlement.