A federal judge in Newark, N.J., has rejected claims by participants in a 401(k) plan offered by Evonik Corp. that the plan charged excessive investment and record-keeping fees and that the fiduciaries’ process for monitoring the plan was faulty.
“The court finds that the investment committee’s process for monitoring investment was diligent,” U.S District Court Judge Madeline Cox Arleo wrote June 28. “The undisputed facts show that the investment committee acted prudently in monitoring the plan’s record-keeping fees.”
Arleo granted Evonik’s petition for summary judgment and declared the case closed in Silva et. al. vs. Evonik Corp. et al.
A motion for summary judgment is usually filed after the parties have completed discovery, giving a judge the opportunity to review details of a case. A motion to dismiss, usually requested soon after a complaint is filed, argues that the plaintiff has failed to state a claim.
Plaintiffs sued in February 2020, alleging the 401(k) plan managers of the specialty chemicals manufacturer violated ERISA by their actions and inaction. They accused defendants of failing to investigate or select investments with lower costs, but the judge disagreed. “The court is satisfied that the investment committee had a prudent process with respect to investments,” Arleo wrote.
Evonik Corp. 401(k) Savings Plan, Piscataway, N.J., had $1.2 billion in assets as of Dec. 31, 2022, according to the latest Form 5500.
