ERISA Class Action Filed Against FMC Corporation, Fiduciaries

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FMC Corporation and the committee of fiduciaries responsible for its employee 401(k) plan are facing a class action alleging violations of the Employee Retirement Income Security Act (ERISA).

The lawsuit claims plan fiduciaries imprudently invested substantial assets in the Sequoia Fund, a mutual fund run by New York City investment firm Ruane, Cunniff & Goldfard. Under the terms of the plaintiff’s retirement plan, the defendants were required to offer at least three diversified investment options other than the company’s stock fund. The lawsuit alleges the Sequoia Fund was not diversified and that fiduciaries did not act sensibly in concentrating employees’ assets in the fund, noted by the lawsuit as the largest single shareholder of Valeant Pharmaceuticals stock.