Oh, come on! Now they’re going after Mickey?
“The Happiest Place on Earth” is a little sadder today with news that a Walt Disney employee has sued the company’s investment committee that deals with workers’ 401(k) plans.
The Orlando Sentinel reports the federal lawsuit targets Disney over its investment in the Sequoia Fund, which lost $2 billion after one of its biggest stocks tanked.
The lawsuit, which seeks class action status, also names as defendants several individual Disney executives who are committee members, according to the Sentinel.
A Disney spokesman had no comment.
The committee “clearly knew or should have known that the Sequoia Fund was an imprudent investment,” the lawsuit said. “A prudent fiduciary would have recognized that….the Plan’s significant investment of employees’ retirement savings in the Sequoia Fund would inevitably result in devastating losses to the Plan and, consequently, to the Plan’s Participants.”
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.
