Federal Judge Sides With Victims of Citigroup's Self-Dealing 401(k) Plan
On September 30, 2014, Federal Judge Sidney H. Stein of Manhattan denied Citigroup’s motion to dismiss a conflict of interest case where Citigroup argued the statute of limitations had passed. The victims, Marya Leber and Sara Kennedy, are former Citigroup employees who suffered losses in their 401(k) retirement accounts because, they allege, Citigroup violated the Employee Retirement Income Security Act (“ERISA”) in mismanaging its 401(k) plan.
Greg Porter represents the plaintiffs and said “Federal law requires Citigroup to manage its 401(k) Plan solely in the interests of Citigroup’s employees, instead Citigroup allegedly used the retirement funds to boost its own profits - taking millions from its own employees by loading its employees' plan with Citigroup’s high fee and poor performing mutual funds, rather than using lower cost and better performing investments available in the market. Citigroup employees could have earned millions more for their retirement if Citigroup had followed the law.”
“Judge Stein’s ruling means the plaintiffs can now investigate Citigroup’s investment decisions and its internal books and records to determine what they knew and when they knew it.” The plaintiffs will also seek to certify the case as a class action.
Citigroup employees who want more information about the lawsuit are encouraged to visit the website www.citi401klawsuit.com.