Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Administration August 13, 2010
Law Firm Probes Drugmaker for 401(k) Missteps
August 13, 2010 (PLANSPONSOR.com) – A New York law firm is investigating whether fiduciaries of the GlaxoSmithKline 401(k) plan violated the Employee Retirement Income Security Act of 1974 (ERISA).
Reported by PLANSPONSOR staff
A news release from the Stull, Stull & Brody firm said it is looking into whether the company ran afoul of ERISA by not disclosing its true operating condition to participants and beneficiaries. Those disclosures included information about the safety of Avandia, a diabetes drug.
Other potential ERISA issues include offering GlaxoSmithKline ADRs as an investment option under the plans when it was not prudent to do so, and/or by allowing an imprudent overconcentration of company stock in the Company’s 401(k) plans.
The drug has been under government scrutiny since 2007 into allegations it increases risks of heart problems.
More information about the probe can be obtained by calling 800-337-4983 or via e-mail at ssbny@aol.com.
You Might Also Like:
2024 PLANSPONSOR National Conference On Demand
Recorded sessions provide valuable insights and education on plan administration and compliance, equipping plan sponsors with the knowledge needed to...
What Does the End of Chevron Deference Mean for the DOL?
It could mean more lawsuits and overturned rules related to retirement plans.
Non-Insurer Plaintiffs Join ACLI in Fiduciary Rule Lawsuit
FSI and SIFMA are also asking for the Retirement Security Rule to be vacated.