Empower Under Fire: Another Reminder That Providers Aren’t Immune from Fiduciary Scrutiny
When most people think about ERISA lawsuits, the usual suspects are plan sponsors. They’re the fiduciaries who pick the investments, hire the service providers, and have the crosshairs on their backs when plaintiffs’ firms go looking for blood. But every once in a while, the tables turn, and it’s the providers themselves who end up in the defendant’s chair. That’s exactly what happened in New Jersey, where three participants in separate plans are accusing Empower Advisory Group LLC and its affiliates of orchestrating a scheme to mislead participants into rolling over into high-fee products. The Complaint The plaintiffs are from three very different plans: · Shakira Williams-Linzey, from the Central Jersey Family Health Consortium 403(b). · Jennifer Patton, from the Heliogen, Inc. 401(k). · Kathleen McFarland, from the Global Medical Response, Inc. 401(k). Together, they allege that Empower and its web of affiliates—Empower Retirement LLC, Empower Financial Services Inc., and Empower An...