ERISA Class Action Watch

The Northern District of California has denied Bechtel’s motion to dismiss the fee class action against its 401(k) plan. Defendants had argued that (1) the complaint failed to allege any violation of applicable statutes or regulations regarding fee disclosure, (2) the plan complied with ERISA Section 404(c), and (3) Bechtel was not a fiduciary.

The court was unpersuaded by these arguments. It held that (1) mere compliance with statutes and regulations regarding fees is not sufficient to show compliance with ERISA, (2) 404(c) is an affirmative defense that is inappropriate on a motion to dismiss, and (3) Bechtel might be a fiduciary because it is alleged to appoint the plan’s fiduciaries.