A federal court judge in Salt Lake City dismissed an ERISA lawsuit against Barrick Gold of North America Inc. and its fiduciaries, saying participants failed to demonstrate violations in the management of a company 401(k) plan.
"Ultimately, plaintiffs' allegations do not create a plausible inference that the committee breached its fiduciary duty," U.S. District Court Judge Tena Campbell wrote on April 21, referring to one of the defendants, the Barrick U.S. Subsidiaries Benefits Committee.
The two participants filing the suit "rely on comparisons of dissimilar investment options," the judge wrote in the case of Matney et al. vs. Barrick Gold of North America Inc. "And a number of their allegations contain incorrect information … At most, plaintiffs have plead circumstantial facts that are 'merely consistent' with liability."
The participants sued in April 2020, seeking class-action status, and later amended their complaint accusing the fiduciaries of failing to use the plan's size and bargaining power to secure lower fees and better-performing investments.
"Plaintiffs relay on averages," wrote the judge. "They make a leap that is far too removed to create anything more than the 'mere possibility' of misconduct."
As for allegations that the fiduciaries could have negotiated a better record-keeping deal, the judge wrote that the lawsuit was "based on generalizations, assumptions and unsuitable comparisons." She dismissed the case with prejudice, which means plaintiffs cannot refile a complaint In her court.
As of Dec. 31, 2020, the Barrick Retirement Plan, Elko, Nev., had $1.21 billion in assets, according to the company's most recent Form 5500.
