Trust Updates Archive
(September 20, 2007--Chicago, IL)--Parties in Mehling v. New York Life have agreed to a $14 million settlement in this class-action that alleges that the company induced its defined benefit plan trustee to invest in its proprietary mutual fund and limited 401(k) participants to proprietary funds in order to grow the funds. Central to plaintiffs' allegations was whether the president of the NYLife's proprietary mutual funds also served as an investment advisor to the firms 401(k) and defined benefit plans. The lawsuit includes a whistleblower claim involving the lead plaintiff, which was settled in June 2006.
Parties were unavailable for comment as under the terms of the settlement agreement they are not permitted to discuss the case until final settlement. A final settlement hearing is scheduled for November 19, 2007.
Plaintiffs in Mehling v. New York Life are represented, in part, by legal counsel who successfully settled similar pension plan allegations against Wachovia's pension plans in 2001.
For more on this topic, see the upcoming issue of Trust Regulatory News.
No statement in this issue is offered as or should be
construed as legal opinion or advice.
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