A class-action lawsuit is expected to be filed next week in federal court against New York Life Insurance Co., claiming it failed to exercise fiduciary responsibility for two defined benefit and two 401(k) plans and used the plans assets to help grow its mutual fund business.
New York Life expects the suit to be filed in U.S. District Court in Philadelphia by the same lawyer involved in plan-related suits against SBC Communications Inc. and First Union Corp.
New York Lifes defined benefit plans have a combined $2.7 billion in assets and the 401(k) plans total about $1.6 billion in assets.
William H. Werfelman Jr., a vice president at New York Life, said the company received a letter in early March from the Washington-based law firm of Sprenger & Lang, signed by partner Eli Gottesdiener, stating a class-action suit would be filed against the firm.
Mr. Gottesdiener wouldnt comment.