Sponsor of small 401(k) sued for losses tied to large ‘patent troll’ investment
InvestmentNewsOctober 27, 2016
A new 401(k) lawsuit against a small retirement plan demonstrates the kind of trouble plan sponsors can find themselves in when they try to go it alone.
A Florida-based business and its owner were sued last Friday for actions taken in the company's $480,000 401(k) plan, which lost approximately 63% of its value within a few years due primarily to an imprudent investment in a so-called “patent troll,” plaintiffs claim.
The lawsuit, McClain et al v. Poppell et al, alleges Samuel Poppell, owner of the Emerald Coast Eye Institute in Okaloosa County, Fla., breached his fiduciary duty under the Employee Retirement Income Security Act of 1974 for failing to act prudently and diversify plan investments. Fi360 and Thomas Clark of The Wagner Law Group. Read More.
