This article originally ran on August 18, 2015.
By Farhad Mirzada
A recent update on the long-running Tussey v. ABB lawsuit did not catch as much attention or press, when the outcome favored the fiduciaries. On July 9, the U.S. District Court for the Southwestern District of Missouri ruled on remand in Tussey v. ABB (No. 2:06-cv-04305-NKL) that ABB breached its fiduciary duties, but since plaintiffs failed to prove damages using the appropriate calculation suggested by the U.S. Court of Appeals for the 8th Circuit, judgment was entered in favor of the fiduciaries.
- fees for the Wellington fund were lower than the fees for the Freedom funds;
- the Wellington Fund contributed less in revenue sharing fees than the Freedom funds;
- records show that an ABB trustee to the plan cited deteriorating performance as the basis for removing the Wellington Fund, but provided no further evidence to support that rationale; and
- ABB needed to make an exception to the investment policy statement in order to transfer the assets into the investment.
Farhad Mirzada is a member of the NTSA Communications Committee and is a Director at Cammack Retirement.
Cammack Retirement is an independent retirement plan consulting firm specializing in non-profit industries.
Please note that this article is for general informational purposes only, is not intended to be taken as legal advice or a recommended course of action in any given situation. Readers should consult their own legal advisor before taking any actions suggested in this article.
Opinions expressed are those of the author, and do not necessarily reflect the views of NTSA, or its members.