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Arbitrator Rules In Favor Of Client’s 401(k) Plan In ERISA Breach Of Fiduciary Duty Case

Posted by Marc Smith | Sep 23, 2010 | 0 Comments

In July 2010, I handled a three-day arbitration in Denver, Colorado on behalf of an employer and its 401(k) Plan in an ERISA breach of fiduciary duty case. In a nutshell, my clients had engaged the services of an outside third-party administrator and registered investment advisor to handle the administration of their 401(k) Plan and to provide investment advice for the company's 401(k) Plan participants. Unfortunately, the administrators and investment advisor failed to notify my clients and the Plan participants of a “market value adjustment” that occurred when a certain investment held in the Plan was liquidated, and the Plan participants suffered a significant loss as a result.

Following the three-day arbitration, the arbitrator ruled that the administrator and investment advisor were chiefly responsible for the loss incurred by the Plan participants and ordered them to substantially reimburse them for the loss incurred as a result of their failure to inform the participants of the market value adjustment.

About the Author

Marc Smith

Marc J. Smith is a Rockville, Maryland employment attorney and a founding member of the law firm formerly known as Smith, Lease & Goldstein, LLC. In 2018, after 18 years managing Smith, Lease & Goldstein, LLC's employment counseling and litigation practice, Marc launched his own boutique practice...

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Representation Of Employers And Employees

The Law Office of Marc J. Smith, LLC is a boutique employment law practice based in downtown Rockville, Maryland near the Montgomery County Circuit and District Courts. The Firm’s practice focuses exclusively in the employment law arena and provides counseling, litigation and a wide range of other employment-related services to employers and employees throughout the State of Maryland, Washington D.C. and other jurisdictions. The Firm also represents individuals who have failed to register with the Selective Service System and who are trying to apply for or maintain federal employment.

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