Court denies request for dismissal in Magna International ERISA suit
A Magna International plant in Markham, Ontario
A federal court judge in Detroit has rejected a request by Magna International of America Inc., Troy, Mich., to dismiss a lawsuit filed by former 401(k) plan participants who accused the company and plan fiduciaries of violating their ERISA duties.
The plaintiffs alleged that the defendants failed to reduce expenses and failed to properly assess each investment option to ensure it was prudent, according to their April 2020 complaint. They also said the fiduciaries should have selected lower-cost shares of mutual funds in the plan lineup.