SFMS Files ERISA Class Action Against DST Systems, Inc.

SFMS announces that it has filed a lawsuit seeking class action status in the United States District Court for the Southern District of New York (Civil Action No. 1:16-cv-01900) on behalf of all participants and beneficiaries of the 401(k) Profit Sharing Plan (the “Plan”) of DST Systems, Inc. (“DST”) from March 14, 2010 and onward. A copy the Complaint may be obtained from the Court, or you can either call our office toll-free at (866) 540-5505 to speak with an attorney regarding this matter, or email us (Alec Berin (aberin@sfmslaw.com) or Chiharu Sekino (csekino@sfmslaw.com)) and we will send you a copy of the Complaint.

The Complaint asserts claims under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001, et seq. against DST; Ruane Cunniff & Goldfarb Inc., an investment firm that serves as an investment adviser and fiduciary to the Plan; the Advisory Committee of the Plan (the “Advisory Committee”); Gregg Wm. Givens, a member of the Advisory Committee; the Compensation Committee of the Board of Directors of DST; and Directors of DST, including Jerome H. Bailey, Lynn Dorsey Bleil, Lowell L. Bryan, Gary D. Forsee, Charles E. Haldeman, Jr. and Samuel G. Liss (collectively, “Defendants”).

Among other things, the Complaint asserts that Defendants breached their fiduciary duties under ERISA in a myriad of significant ways. Specifically, the Complaint alleges that Defendants pursued an exceptionally imprudent investment strategy with respect to a significant portion of the Plan’s assets and/or failed to adequately monitor the investment of the Plan and the fiduciaries pursuing this investment “strategy.” Moreover, the Complaint claims that Defendants also breached their fiduciary duties by allowing unreasonable expenses to be charged to participants for administration of the Plan, and selected and retained high-cost and poor-performing investments instead of other available and more prudent alternative investments. As a direct result and consequence of these breaches of fiduciary duty and related misconduct, the Complaint asserts that the Plan and its participants have suffered losses of tens of millions of dollars.

To read a Bloomberg article regarding this action, please visit:

https://www.bloomberglaw.com/s/news/f694c36a182584fe4690f52b0e39f2e9/document/O43TQP3H0JK0?bestStory=true&headlineOnly=false

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