Claims Against Astellas, Aon Move Forward in Untested CITs Lawsuit
A judge found that allegations were sufficient to deny most motions to dismiss filed by the plan sponsor and the investment manager.
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A federal judge has moved forward claims in an Employee Retirement Income Security Act (ERISA) lawsuit against pharmaceutical product manufacturing company Astellas US LLC, its board of directors and its retirement plan administrative committee, as well as the plan’s discretionary investment manager, Aon Hewitt Investment Consulting.
The plaintiffs allege that instead of acting in the exclusive best interest of participants, Aon Hewitt, now known as Aon Investments USA, acted in its own interest by causing the plan to invest in Aon’s proprietary collective investment trusts (CITs) for Aon’s benefit. The Astellas defendants are also accused of failing to use the plan’s bargaining power to negotiate reasonable fees for investment management services.