A class-action suit filed against New York Life by its 401(k) and pension plan participants was amended to add charges of ERISA violations against each individual board member of the plans. The amended complaint also claims former investment adviser Linda Livornese and Jefferson Boyce, her replacement as adviser, violated ERISA and RICO, and accuses Ravi Akhoury, the head of New York Life subsidiary MacKay-Shields, of violating RICO.
Based on "newly discovered evidence, the complaint alleges that Ms. Livornese, who is president of New York Lifes MainStay Institutional mutual funds, and later Mr. Boyce, provided trustees and the plans with "materially false information and omissions regarding costs in order to persuade the trustees to invest plan assets in New York Lifes proprietary investment options, including funds from MainStay and MacKay-Shields.
Additionally, the amended complaint claims the defendants "misinvested assets of some of New York Lifes welfare benefit plans, such as VEBA plans, into other New York Life funds.
William Werfelman, spokesman at New York Life, did not return calls seeking comment by press time.
The case is being heard in U.S. District Court in Philadelphia. The earlier complaint named the New York Life board of trustees as a whole as defendant.