Third Circuit Revives Wesco Retirees’ ERISA Fee Case

The Third Circuit Court of Appeals issued a precedential opinion reversing the District Court’s order granting a motion to dismiss, allowing claims to move forward against Wesco Distribution, Inc. and its investment committee for breaching their fiduciary duties to its pension plan participants by allowing the plan’s recordkeeper to charge four times more than the reasonable cost for services it provided, causing the plan to lose millions of dollars in savings. Every year, millions of employees entrust their retirement savings to plans established under the Employee Retirement Income Security Act of 1974 (ERISA) – these employers and those they designate to oversee the retirement plans are entrusted with fiduciary duties which are among “the highest known to law” with obligations to act loyally and prudently to protect plan participants and their hard-earned retirement dollars.

Partners Steven Schwartz and Beena McDonald represent the plaintiffs Robert and Nancy Mator and the class of participants and beneficiaries of the Wesco Retirement Savings Plan.  Mr. Schwartz told Law360 that they are pleased the appeals court reinstated all the claims and look forward to proceeding to discovery.

Link to Law360 article: https://www.law360.com/articles/1838106/3rd-circ-revives-wesco-retirees-erisa-fee-case