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Posts tagged "SunTrust"

Class Definition in SunTrust ERISA Lawsuit

Between mid-2007 and early 2011, SunTrust Banks ("SunTrust" or the "Company") was accused of improperly handling its employees' 401(k) plan by purchasing its own common stock with the employees' retirement funds. Given the large stake in the subprime housing market (one of the main contributors to the Great Recession), SunTrust's employees filed a lawsuit in mid-2008, alleging that the Company's actions were imprudent and that it breached its Employment Retirement Income Security Act ("ERISA") fiduciary duties, which require SunTrust to act solely in the interests of the 401(k) plan members. The employees further claimed that SunTrust breached its fiduciary duties by failing to disclose how it was using the employees' retirement savings.