Judge dismisses 401(k) ERISA lawsuit against Associated Banc-Corp

A federal court judge in Green Bay, Wis., has dismissed a lawsuit filed by current and former participants in a 401(k) plan offered by Associated Banc-Corp, who had argued that the company and plan fiduciaries mismanaged the plan in violation of ERISA.

The plaintiffs sued in January 2021 — and later filed an amended complaint — criticizing the plan's investment selection, complaining that the plan paid excessive record-keeping fees to a company subsidiary and failed to properly monitor and control expenses.

"Allegations must support more than the mere possibility that a breach of fiduciary duty occurred," U.S. District Judge William C. Griesbach wrote in his Sept. 30 dismissal. "The allegations must make the claim plausible."

The judge rejected allegations of self-dealing because the plan contained several of the company's proprietary funds.

"Having failed to allege facts sufficient to raise a plausible inference that defendants breached the fiduciary duties by including Associated funds in the plan, plaintiffs' claim fails," he wrote.

As for the plan offering allegedly poor-performing collective investment trusts, the "plaintiffs have failed to allege facts that 'tell a plausible story'" regarding fiduciaries' management of these investments, he wrote.

The Associated Banc-Corp 401(k) and Employee Stock Ownership Plan, Green Bay, Wis., had $809 million in assets as of Dec. 31, 2021, according to the latest Form 5500.