US Bank Pension Plan Lawsuit

This lawsuit alleges that Defendants violated ERISA by causing the U.S. Bancorp Pension Plan (the “Plan”) to engage in an undiversified, imprudent, and disloyal investment strategy by investing approximately 100% of its assets in one asset class, equities.  The complaint alleges that this investment strategy caused the Plan to lose $1.1 billion in 2008, bringing the Plan from being 144% funded at the end of 2007 to being 84% funded at the end of 2008, thereby jeopardizing the retirement benefits of the Plan’s participants and beneficiaries.

Summary of the Claims

The complaint alleges that Defendants breached the fiduciary duties that they owed to Plan participants by causing or permitting the Plan to invest almost 100% of its assets in equities, an undiversified and risky strategy that failed to safeguard the Plan principal.  The complaint also alleges that certain Defendants failed to monitor adequately the Plan’s investments and failed to take appropriate steps to remove the Plan’s Investment Manager, FAF Advisors, which was a subsidiary of U.S. Bancorp.  Additionally, the complaint alleges that an investment allocation strategy of investing 100% of Plan assets in equities served U.S. Bancorp’s and the Defendants’ own interests to the detriment of the Plan and its participants.  The complaint further alleges that Defendants knew or should have known that this investment strategy was neither prudent nor in the best interests of the participants and beneficiaries of the Plan.

Plaintiff brings this action to recover losses to the Plan for which Defendants are personally liable, to disgorge any unjust profits received by certain Defendants, and for other equitable relief as may be appropriate, including injunctive relief, a court-appointed fiduciary, constructive trust, restitution, equitable tracing, and other monetary relief to make the Plan whole.

Class Action Allegations

This lawsuit is brought on behalf of the following persons:

All participants who were vested in accrued benefits in the Plan from September 30, 2007 to December 31, 2010 and their beneficiaries.  Excluded from the Class are Defendants and members of their immediate families or any of their heirs, successors, or assigns.

Status of the Litigation

Plaintiff filed the Complaint on September 30, 2013 in the United States District Court for the District of Minnesota.

How We Can Help

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