A federal District Court judge in St. Louis dismissed a complaint against Olin Corp. and 401(k) plan fiduciaries by two plan participants who alleged ERISA violations for record-keeping expenses and selection of investment options.
"The allegations in the complaint do not establish that the (Olin) investment committee allowed (participants) to pay excessive fees," U.S. District Court Judge Stephen R. Clark wrote on June 21 in Malika Riley and Takeeya S. Reliford vs. Olin Corp. et al.
"The court concludes that Riley and Reliford do not state a breach-of-fiduciary-duty claim under an excessive recordkeeping-fees theory," Mr. Clark wrote.
The judge also rejected the plaintiffs' argument that the plan should have offered collective trust versions of certain investments because they were cheaper than the mutual fund versions. "Riley and Reliford's complaint lacks any comparative allegations regarding plan investments, asset allocations, and the like," Mr. Clark wrote.
The plaintiffs' citing lower expense ratios for CITs vs. mutual funds wasn't enough proof of an ERISA violation, he said. "The Court concludes that Riley and Reliford do not state a breach-of-fiduciary-duty claim under an excessive investment-fees theory."
The plaintiffs, who were seeking class-action status for their complaint, filed suit in November 2021
The Olin Corp. Contributing Employee Ownership Plan, Clayton, Mo., had $1 billion in assets as of Dec. 31, 2020, according to the latest Form 5500.
