Olin Corp. ERISA Lawsuit Claims Resemble Prior Suits

The ERISA lawsuit filed against Olin Corp. includes claims similar to those included in prior lawsuits.

The Case: Malika Riley and Takeeya S. Reliford v. Olin Corp., the Board of Directors of Olin Corp., the Olin Corp. Investment Committee, etc.

The Court: U.S. District Court for the Eastern District of Missouri

The Case No.: 4:21-cv-01328-SRC

The Plaintiff: Malika Riley and Takeeya S. Reliford

The plaintiffs in the case, Malika Riley and Takeeya S. Reliford, allege that the fiduciary defendants failed to appropriately monitor and control the plan’s recordkeeping fees and failed to adequately review the investment portfolio with the necessary care to make sure investment options were prudent (regarding both cost and performance of each investment). The plaintiffs allege that the plan fiduciaries maintained specific (allegedly underperforming) funds in the plan despite the availability of options with lower costs and better returns.

The Defendant: Olin Corporation

Olin Corporation, Defendant in the case, is a manufacturer producing ammunition, chlorine, and sodium hydroxide based in Clayton, Missouri. The corporation traces its roots to two different companies, both founded in 1892: Franklin W. Olin's Equitable Powder Company and the Mathieson Alkali Works. According to the allegations in the complaint, the corporation’s mismanagement of the plan was to the detriment of plan participants and their beneficiaries and thus constitutes a breach of fiduciary duty of prudence. Plaintiffs in the case allege that Olin Corporation plan fiduciaries’ actions were unreasonable and cost the plan and Olin Corporation plan participants millions of dollars. Defendant faces claims for breach of fiduciary duties of prudence and failure to monitor fiduciaries. Numerous other mid to large-sized businesses across the nation face (or have recently faced) similar claims that met with varying degrees of success over the past several years.

Summary of the Case: Malika Riley and Takeeya S. Reliford v. Olin Corporation

The complaint was filed in the U.S. District Court for the Eastern District of Missouri and included substantially similar allegations to various other lawsuits filed against American employers alleging fiduciary breaches connected to the management and operation of the company’s defined contribution (DC) retirement plans. Plaintiffs allege that Olin Corporation’s use of revenue sharing to pay for recordkeeping saddled the plan and its participants with excessive fees for both recordkeeping and administration. Some authorities have recognized “reasonable” annual rates for similarly sized retirement plans to average around $35 per participant (with costs for these services generally dropping daily). According to the complaint, there were times during the class period when the plan fiduciaries agreed to recordkeeping fees over $100 per participant. As the plan stayed with the same service provider over the entire course of the class period, the plaintiffs also allege that there is little to indicate that the plan fiduciaries attempted to do their duty with any request for proposals (RFP), which should be conducted regularly. The complaint questions whether the fiduciaries’ actions constituted adequately monitoring the plan’s investments. While changes have been made in recent years pulling funds out of mutual funds and turning to collective investment trusts (CITs), plaintiffs argue the changes were made too late to avoid significant participant losses.

If you have questions about California employment law or if you need to file an ERISA suit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.