Posted January 2nd, 2019.
By Ellyn Felton
IOWA (KCRG) – A class action lawsuit has been filed against Transamerica Corporation.
A lawsuit between Transamerica Corporation and Sanford Heisler Sharp, LLP filed on December 28, alleges the company violated its duties under ERISA and abused employees’ trust by mismanaging their retirement funds.
The lawsuit claims the company invested employee retirement savings into funds that consistently underperform in their investment benchmarks and similar funds.
Documents allege Transamerica has cost its employees millions of dollars in retirement savings that were a part of the Transamerica 401(k) Plan.
Plaintiffs Jeremy Karg, Matthew R. LaMarche, and Shirley Rhodes have each filed the case individually as representatives of the estimated 17,000 participants of Transamerica’s 401(k) Plan.
Documents list the Transamerica Corporation and the committees and their members that provide investment advice and services to the Plan as the defendants.
“Transamerica retained too many poor-performing investment options on the Plan which were highly detrimental to the retirement savings of Plan participants,” David Sanford, chairman of Sanford Heisler Sharp and counsel for Plaintiffs. “Transamerica and the committees should be held to the highest standard as fiduciaries; but in this case they fall below the lowest standard.”
The Plaintiffs claim Transamerica has failed to select investment options and monitor their performance, which is required by ERISA.