American Airlines, fund company settle 401(k) lawsuit for $22 mln

Koolcat

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Mar 21, 2014
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On April 15, 2016, we filed a lawsuit on behalf of participants in the American Airlines American Airlines, Inc. 401(k) plan (the “Plan”) against American Airlines, Inc. as well as the individuals and committees who have been responsible for running the Plan over the past six years. The lawsuit alleges that the Defendants violated the Employee Retirement Income Security Act (“ERISA”) by engaging in unlawful self-dealing to promote the business interests of American Airlines, Inc., its parent company, and its affiliates and subsidiaries (“American Airlines”), in breach of the fiduciary duties owed to the Plan and its participants.

About The Lawsuit
The lawsuit alleges that the Plan’s fiduciaries did not act “solely in the interest of the participants and beneficiaries,” instead using the Plan to promote their own business interests. Specifically, American Airlines had a financial interest in promoting the use of American Beacon mutual funds, and because of this interest, retained numerous American Beacon funds in the Plan, despite the fact that less expensive, better-performing alternatives were available in the marketplace. For example, the Plan had hundreds of millions of dollars invested in the American Beacon S&P 500 Index Fund, despite the fact that the identical investment was available from other mutual fund companies (such as Fidelity and Vanguard) who would have charged four to six times less than the American Beacon index fund charged.

This lawsuit seeks to recover the financial losses suffered by the Plan’s participants as a result of American Airlines’ disloyal and imprudent retention of American Beacon funds within the Plan since 2010, in addition to other forms of relief. For a copy of the Complaint, click here.

For information about our other 401(k) lawsuits, please see the section of our website relating to 401(k) Litigation.

How Can I Help?
If you believe you have been shortchanged by excessive fees and poor investment options within the Plan please contact us to learn more about your rights under ERISA and assist in our investigation.

You may contact us toll free at 1-877-448-0492, write to us at Nichols Kaster, PLLP, 4600 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402, or email our class action clerk, Steve Eiden, at [email protected]. You may also check this site for periodic updates.

What Is A Class Action?
In a class action lawsuit, one or more people, called the “class representatives,” (in this case: Whitney Main, Henry Schmidt, and Daniel Grentz) sue on behalf of themselves and other people who have similar claims. Together, this group of people is called a “class” or “class members.” The class representatives and the class members together are called the “Plaintiffs.” The companies they sue are called the “Defendants.” The judge or jury resolves the claims for everyone in the class—except those who ask to be excluded from the lawsuit.

Who is Included?
The lawsuit is being brought on behalf of the following proposed class:

All participants and beneficiaries of the American Airlines, Inc. 401(k) Plan (formerly known as $uper $aver Capital Accumulation Plan for Employees of Participating AMR Corporation Subsidiaries) at any time on or after April 15, 2010.
 
Another case of Lawyers raking in millions and the victims getting pennies on the dollar.
Unitedhealthcare anyone??
 
Another case of Lawyers raking in millions and the victims getting pennies on the dollar.
Unitedhealthcare anyone??

Anyone remember the Southwest Airlines drink voucher lawsuit a few years ago?

http://www.abajournal.com/news/arti...thwest_airlines_in_class_action_over_rescind/

The lawyers made tens of millions of dollars, while the "victims" (those with expired drink vouchers) got free drink coupons. I just wished the lawyers were paid in drink coupons instead.
 
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