FIDUCIARY/PENSIONS ALERT: ERISA Class Action Against Kraft Revived
Close
 

FIDUCIARY/PENSIONS ALERT: ERISA Class Action Against Kraft Revived

Seventh Circuit – Illinois – April 11, 2011. A divided court ruled that plaintiffs could proceed against Kraft on a their excessive fees claim relating to the company’s 401(k) plan.  The plaintiffs advanced the theory that the unitized company stock fund was imprudently designed due to “investment drag” and “transaction drag” intrinsic to these funds.  This decision makes it clear that fiduciaries must employ diligence and give full consideration to plan administration issues as well as document the reasoning behind decisions made and practices followed. 

 

 75 George v Kraft Foods Global 4-11.pdf