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Dartmouth-Hitchcock Retirement Plans Breach of Fiduciary Duty Class Action

The Dartmouth-Hitchcock Retirement Plan and the Dartmouth-Hitchcock Employee Investment Plan are governed by the Employee Retirement Income Security Act (ERISA). This class action brings suit for those it says owe fiduciary duties to these plans, including Dartmouth-Hitchcock Clinic, its Board of Trustees, its Administrative Investment Oversight Committee, and the members of the Board and Committee during the period in question. The complaint alleges that these defendants did not fulfill their duties of loyalty and prudence to the plans.

The class for this action is all persons and their immediate family members who were participants in or beneficiaries of the plans, at any time between March 18, 2016 and the date of judgment in this case.

Fiduciaries of retirement plans, the complaint alleges, must take actions that are “solely in the interest of the participants and beneficiaries,” applying the “care, skill, prudence, and diligence” that would be expected in handling a plan of a similar scope. Fiduciaries are expected to keep fees for recordkeeping and administration down and to monitor the investment options offered in the plan, to ensure that their expenses are controlled and to remove those that are not performing well.

During the time at issue in this case, the plans always had a combined amount of at least $1.2 billion in assets under management. This qualifies them as being “jumbo” sized, which the complaint alleges gives them significant bargaining power in the marketplace for fees and expenses. However, the complaint claims that the defendants in this case “did not try to reduce the Plans’ expenses or exercise appropriate judgment to scrutinize each investment option that was offered in the Plans to ensure it was prudent.”

The complaint alleges that the plans’ fees were unreasonable. It shows charts comparing the funds’ expense ratios, which are between 0.64% and 0.80%, to a median expense ratios of between 0.30% to 0.50%.

Two other charts of recordkeeping costs for the plans show per-participant costs of between $47 per year to $133 per year, while another shows comparative prices charged to similar plans by other recordkeepers that range from $22 to $34 per participant.

Other charts compare the performance of the plans’ investment options with the performance of other investment options with the same investment styles. The complaint alleges that the funds offered as investment options in the plans underperformed and should have been replaced with better-performing investment options.

All in all, the complaint alleges that the defendants in this case are fiduciaries for the plans who did not fulfill their duties of loyalty and prudence to the plans.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Dartmouth-Hitchcock Retirement Plans Breach of Fiduciary Duty Complaint

March 18, 2022

The Dartmouth-Hitchcock Retirement Plan and the Dartmouth-Hitchcock Employee Investment Plan are governed by the Employee Retirement Income Security Act (ERISA). This class action brings suit for those it says owe fiduciary duties to these plans, including Dartmouth-Hitchcock Clinic, its Board of Trustees, its Administrative Investment Oversight Committee, and the members of the Board and Committee during the period in question. The complaint alleges that these defendants did not fulfill their duties of loyalty and prudence to the plans.

Dartmouth-Hitchcock Retirement Plans Breach of Fiduciary Duty Complaint

Case Event History

Dartmouth-Hitchcock Retirement Plans Breach of Fiduciary Duty Complaint

March 18, 2022

The Dartmouth-Hitchcock Retirement Plan and the Dartmouth-Hitchcock Employee Investment Plan are governed by the Employee Retirement Income Security Act (ERISA). This class action brings suit for those it says owe fiduciary duties to these plans, including Dartmouth-Hitchcock Clinic, its Board of Trustees, its Administrative Investment Oversight Committee, and the members of the Board and Committee during the period in question. The complaint alleges that these defendants did not fulfill their duties of loyalty and prudence to the plans.

Dartmouth-Hitchcock Retirement Plans Breach of Fiduciary Duty Complaint
Tags: Breach of Fiduciary Duty, ERISA Violations, Retirement Plans