In Re National City 2008 ERISA Litigation
March 2008 - A class action filed in U.S. District Court for the Northern District of Ohio on behalf of participants and beneficiaries of the National City, Inc. (NatCity) 401(k) Plan for violations of the federal pension law (ERISA) in connection with the loss of value in NatCity stock acquired and held by present and former employees of NatCity through the Plans. The goal of this litigation is to recover damages sustained by the participants and beneficiaries of the Plans.
The complaint alleges, among other things, that NatCity and the various defendants breached their fiduciary duties owed to the Plans’ participants by: (1) failing to prudently and loyally manage the Plans’ assets; (2) failing to provide participants with complete, accurate and material information concerning NatCity’s business and financial condition necessary for participants to make informed decisions concerning the prudence of directing the Plans to invest in NatCity stock; and (3) failing to appoint and monitor the performance of the other fiduciaries. NatCity’s exposure to the subprime market and its contingent liabilities with respect to various off-balance sheet transaction has caused the Plans to suffer well over $500 million in market losses.