Score one for the little guy, who in this case is Big Oil.
In a possible sign of things to come, Chevron Corp. convinced a federal judge to dismiss a class action claim over stable value funds that challenged alleged high-fees and unsuitable investment options associated with its 401(k) plan.
Jerome Schlichter, managing partner with St. Louis-based Schlichter, Bogard and Denton, represented the plaintiffs. Schlichter has made a name for himself by suing larger 401(k) plan sponsors and financial services companies, most famously receiving a unanimous decision from the Supreme Court in the case of Tibble v. Edison.
According to Bloomberg BNA, the Chevron lawsuit “challenged many aspects of the company’s $19 billion retirement plan, such as the inclusion of a money market fund instead of a stable value fund and the use of mutual funds instead of lower-fee vehicles such as separate accounts and collective trusts.”
The order dismissing the case, it adds, will be viewed with interest by the many other companies accused of 401(k) mismanagement over the past year, including Intel Corp., Anthem Inc., Verizon Communications Inc., Oracle Corp. and American Airlines Inc.
Schlichter has also filed lawsuits against prominent universities in recent weeks, alleging fiduciary malfeasance in the managing of their employees’ 403(b) plans. They include Duke University, John Hopkins, The University of Pennsylvania, Vanderbilt, Massachusetts Institute of Technology, New York University, and Yale, among others.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
