Federal Court Enters $15 Million Judgment in Severstal Wheeling, Inc. Retirement Plan Litigation
August 10, 2015
On August 10, 2015, the U.S. District Court for the Southern District of New York issued a trial decision in Severstal Wheeling, Inc. Retirement Committee et al v. WPN Corporation, following a bench trial which was held from July 8 through July 22, 2014. The Honorable Laura Taylor Swain entered a judgment of more than $15 million in favor of the Plaintiffs, finding that Labow and WPN breached their fiduciary duties to the two Severstal Plans while they served as investment manager for those Plans in 2008 and until May 19, 2009.
The complaint was initially filed on February 5, 2010, alleging that WPN Corporation and Ronald Labow, fiduciaries of the Wheeling Corrugating Company Retirement Security Plan and the Salaried Employees’ Pension Plan of Severstal Wheeling, Inc. (nka RG Steel) (together the “Severstal Trust”), breached their fiduciary duties with respect to the investment of the Trust’s assets by failing to properly diversify the investments of those assets.
Cohen Milstein serves as counsel for the plaintiffs. More information on this litigation can be found here.
