CenturyLink successfully defended the class-action lawsuit filed against them.<\/p>\n
A federal judge granted CenturyLink\u2019s motion for summary judgment, finding that they didn\u2019t violate ERISA. The plaintiffs alleged CenturyLink breached its fiduciary duty under ERISA by poorly designing and failing to monitor the large-cap fund used within the plan.<\/p>\n
CenturyLink\u2019s Dollars and Sense 401(k) Plan has assets of $5.1 billion with 43,000 participants at the end of 2018.\u00a0 The case was all about allegations that CenturyLink Investment Management Active Large Cap U.S. Stock Fund was imprudently designed.<\/p>\n
The plaintiffs alleged the fund failed to keep pace with its benchmark, the Russell 1000 Stock Index. The fund used a multi-manager design, with portions of the assets managed by Cornerstone Investment Partners, Fiduciary Management, Ivy Investment Management Company, and Systematic Financial Management, the plaintiffs wrote in the complaint. Some of the assets were also invested in the T. Rowe Price Institutional Growth Fund and the State Street Global Advisors Russell Large Cap Index Fund, according to the complaint.<\/p>\n
The court didn\u2019t want to second guess CenturyLink and it\u2019s clear that lagging returns isn\u2019t enough to show that there is a breach of a plan sponsor\u2019s fiduciary duty.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" CenturyLink successfully defended the class-action lawsuit filed against them. A federal judge granted CenturyLink\u2019s motion for summary judgment, finding that they didn\u2019t violate ERISA. The plaintiffs alleged CenturyLink breached its fiduciary duty under ERISA by poorly designing and failing to … Continue reading