A federal judge in the Western District of Missouri has ruled in favor of trustees of ABB Inc.'s defined contribution plan in Tussey v. ABB Inc., even though plan fiduciaries "did abuse their discretion" in mapping plan investments from one mutual fund to another, according to court documents.
Judge Nanette Laughrey originally ruled in favor of the plaintiffs in 2012, ordering ABB to pay $21.8 million in losses from the decision to map, or transfer about $120 million of participants' assets in Vanguard's Wellington Fund the Fidelity's target date Freedom Funds.
On appeal, the 8th Circuit Court agreed with the original ruling that ABB fiduciaries had caused participant losses by moving Wellington funds into the Freedom Funds, but remanded the case back to the lower court because the amount of damages awarded was "speculative," according to court documents.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
