A financial services firm withdrew its ERISA lawsuit against ADP Inc., in a case that already had been dismissed twice by a federal judge.
The withdrawal notice was filed without comment June 8 in a U.S. District Court in Newark, N.J., in McCaffree Financial Corp. et al vs. ADP Inc. et al.
The notice, signed by attorneys representing plaintiffs and defendants, said each party will bear its own attorneys' fees.
McCaffree is a sponsor in the ADP TotalSource Retirement Savings Plan. It sued in May 2020, criticizing allegedly high record-keeping fees, and expensive and poor-performing investments in the multiple-employer 401(k) plan.
U.S. District Court Judge Esther Salas dismissed the initial lawsuit in March 2022, saying the firm lacked standing to sue. She also allowed an amended lawsuit.
She dismissed the complaint again on March 31 this year, writing that the lawsuit "does not sufficiently allege" that the defendants violated ERISA for excessive record-keeping fees, administrative fees and total plan costs. Her dismissal was made "without prejudice," meaning the plaintiffs — McCaffree and an employee — could have filed another amended complaint.
ADP TotalSource Retirement Savings Plan, Miami, had $7.9 billion in assets as of Dec. 31, 2021, according to the company's most recent Form 5500 filing.