A federal appeals court upheld a lower court ruling that dismissed two lawsuits against Minnesota Mining and Manufacturing Co. Participants and beneficiaries had alleged the company breached its fiduciary responsibility to its $12.2 billion pension plan when it lost $20 million in a hedge fund that failed in 1994.
Plaintiffs said 3M should make good on the loss, but the 8th U.S. Circuit Court of Appeals agreed with a U.S. District Court ruling that the participants benefits were not at risk because the 3M plan was overfunded.
Citing a U.S. Supreme Court ruling in Hughes v. Jacobsen, the appellate court noted that "plaintiffs, as plan beneficiaries, have no claim or entitlement to its surplus.