CNF Inc., Palo Alto, Calif., and its actuary, Towers, Perrin, Forster & Crosby, were named in a class-action lawsuit charging breach of fiduciary duty involving the now-terminated Consolidated Freightways Co. Inc. Pension Plan. The complaint, filed Aug. 28 in U.S. District Court in San Jose, Calif., alleges CNF failed to ensure that enough money was transferred to the CFC plan when it was spun off in 1996. The complaint also charges that Towers Perrin officials used unrealistic retirement age and rate-of-return assumptions because the sponsor was likely to fail, said Stephen Tindall, a partner at Lieff Cabraser Heimann & Bernstein, one of the law firms that filed the suit.
Consolidated Freightways closed in September 2002; the PBGC took over the salaried employees plan June 3. It had $228 million in assets and $504 million in liabilities.
Nancy Colvert, director of publication at CNF, said the company does not comment on pending litigation. Towers Perrin officials did not return calls by press time seeking comment.