Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance June 5, 2012
Retiree Sues BNA Management Over Sale to Bloomberg
June 5, 2012 (PLANSPONSOR.com) –
A retiree of a Virginia publishing company sued managers of
her retirement plan for failing to disclose her company’s acquisition by Bloomberg, according to a report in the Washington
Business Journal.
Reported by Jay Polansky
Judith Knight, who worked at the Bureau of National Affairs Inc. (BNA), said her plan’s management cost her $660,000. When Knight sold her shares of BNA at $17.50 in 2011, she said they did not tell her that Bloomberg LP was offering $33 a share for the company, the Washington Business Journal found.
Bloomberg eventually bought the company for $39.50 a share.
Knight sold the stock after BNA management told her she had to take a distribution from her 401(k) account or roll it over because she was nearing age 65.
Her lawyer claims that management breached their fiduciary duty by failing to disclose Bloomberg’s offer.
The defendants named in the suit include Paul Wojcik, then chief executive and chairman; Gregory McCaffery, president; and retirement plan directors. Knight is seeking damages and a class action.