A federal court judge in San Francisco dismissed for a second time an ERISA lawsuit by participants in a Salesforce.com 401(k) plan, saying the plaintiffs' amended complaint wasn't much different than the first complaint that she dismissed in October 2020.
The plaintiffs accused the company and its fiduciaries of failing ERISA's duty-of-prudence guidelines because they selected and retained allegedly "costly" investment options. The original lawsuit was filed in March 2020 in the case of Davis et al. vs. Salesforce.com Inc.
However, they "failed to make an adequate showing" of ERISA violations based on examples they provided in the amended complaint, U.S. District Judge Maxine M. Chesney wrote in an April 15 opinion. "Given plaintiffs' failure to cure previously identified deficiencies, such dismissal will be without further leave to amend."
Ms. Chesney also wrote that plaintiffs, in their original complaint, said the defendants had violated their duty to monitor fiduciaries for "imprudent actions and omissions" as well as to monitor decision-making processes in evaluating investments.
She dismissed this claim in October 2020 because it depended on the duty-of-prudence claim. She rejected this argument again for the same reason, adding that plaintiffs' cannot amend the lawsuit again.
The Salesforce 401(k) Plan, San Francisco, had $3 billion in assets as of Dec. 31, 2019, according to the latest Form 5500.