Red Cross Steered Workers To Shoddy 401(k) Funds, Suit Says

June 17, 2021
Law360 (June 16, 2021, 6:29 PM EDT) -- The American National Red Cross was hit with a proposed class action in a D.C. federal court alleging the nonprofit violated federal benefits law by letting its retirement plan pay excessive fees and letting workers sink their retirement savings into underperforming funds.

The lawsuit filed Tuesday by several Red Cross employees alleged the humanitarian nonprofit and its board of governors carelessly made an underperforming investment fund the default option for its workers' 401(k) for several years, breaching the Employee Retirement Income Security Act.

"The overall breadth and depth of the [Northern Trust] Focus Funds' underperformance raises a strong inference that defendants'...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!