Court Denies Motion to Dismiss In Safeway ERISA Litigation

On March 13, 2017, the Honorable Judge Jon S. Tigar, of the U.S. District Court for the Northern District of California, denied the motion to dismiss of Safeway Inc. ("Safeway") and certain fiduciaries of Safeway's 401k Plan ("Defendants") in a lawsuit brought under the Employee Retirement Income Security Act ("ERISA"). Maria Karla Terraza ("Plaintiff"), brings her claims on behalf of the Safeway 401k Plan ("Plan") and alleges that the Defendants breached their fiduciary duties under ERISA in connection with their management and administration of the Plan.

Defendants filed a motion to dismiss Plaintiff's complaint for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. However, Judge Tigar ruled that Plaintiff has satisfied her burden at this stage of the litigation by alleging facts from which the Court can reasonably infer that Defendants breached their duty of prudence and loyalty in connection with their management and administration of the Plan.

If you have any questions or require any additional information, please contact James E. Miller (jmiller@sfmslaw.com) or Laurie Rubinow (lrubinow@sfmslaw.com) by email or toll-free at (866) 540-5505.