Allstate Sued for Accusations of Another Fiduciary Breach
A new complaint filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, accuses Allstate of various breaches of fiduciary duty and prohibited transactions under the Employee Retirement Income Security Act (ERISA).
Many features of the lawsuit echo the numerous other ERISA fiduciary breach lawsuits filed against well-known employers—including a separate suit already filed against Allstate.
“Throughout the class period, Allstate defendants breached these fiduciary duties,” the complaint states. “In 2011, and again in 2017, they loaded the plan with a suite of poorly performing funds called the Northern Trust Focus Target Retirement Trusts. Allstate defendants kept these funds throughout the class period despite their continued underperformance.”
Northern Trust is not a named defendant in the lawsuit, though the investment options in question here have been cited in other, previous lawsuits. For example, in August 2019, a group of current and former participants in the Walgreen Profit-Sharing Retirement Plan filed a similar complaint.
