FOLLOW US

The legal standoff between Dish Network Corp. and its employees over alleged retirement fund mismanagement has reached a new crescendo. The company urged a Colorado federal judge to toss out the Dish Network 401(k) Fund Suit, arguing that the case “stalls at the starting line” due to a lack of credible evidence.

Filed Tuesday, Dish’s motion for summary judgment aims to end the class action that accuses the company of violating the Employee Retirement Income Security Act (ERISA) by keeping underperforming funds in its 401(k) plan. Dish insists the claims rest on “rootless speculation,” not substantiated facts.

Dish Network Strikes Back: “No Proof of Imprudence”

“At summary judgment, the lawsuit must run on competent, admissible evidence; this one stalls at the starting line,” Dish declared, accusing plaintiffs of failing to show that its investment choices were objectively unreasonable.

The case dates back to January 2022, when a group of employees sued Dish, claiming that its Fidelity Freedom Funds lagged behind comparable market options and that the company cost plan participants roughly $2 million in excessive recordkeeping fees — allegedly between $19 and $29 more per person per year.

In 2024, the court granted class certification, encompassing all workers who invested in Dish’s 401(k) plan from January 21, 2016, onward. But Dish contends that the workers’ allegations crumble under scrutiny.

Company Argues Plaintiffs’ Case “Grinds to a Halt”

Dish’s motion zeroes in on the timeline. The plaintiffs argue that the plan’s committee should have removed the Fidelity funds in March 2016, a single quarter into the certified class period. But Dish maintains that neither of the plaintiffs’ experts could prove that the funds were “objectively imprudent” at any point.

“Neither of their experts has opined (or could opine) that the Funds were objectively imprudent at any time in the class period — let alone the first quarter of 2016,” the company asserted.

Dish further blasted the damages analysis as speculative, claiming the experts relied on just “three prior quarters” to allege that the committee acted too slowly.

Dish Says Workers “Chased Returns” Against Fiduciary Judgment

Dish accused the plaintiffs of trying to “inject rotten oil into the machinery of the plan,” saying they wrongly assume the company was obligated to drop funds based on minor short-term dips.

“The plaintiffs’ invitation that the Court find the Committee was required to chase returns or hurriedly jettison an investment option flies in the face of the Plan’s IPS, reasoned fiduciary judgment, and the weight of controlling caselaw,” Dish said.

The telecom company emphasized that its committee acted prudently, following its Investment Policy Statement (IPS) and adhering to fiduciary standards, even during market fluctuations.

Legal Teams Prepare for a High-Stakes Decision

Representatives for both parties have not yet commented on the pending motion.

The workers are represented by James E. Miller, Laurie Rubinow, Alec J. Berin, and Anna K. D’Agostino of Miller Shah LLP, along with Mark K. Gyandoh of Capozzi Adler PC.
Dish Network is represented by William J. Delany, Larry M. Blocho Jr., and Hannah Stephens of Groom Law Group.

The outcome of the Dish Network 401(k) Fund Suit could ripple across corporate America, as courts continue to define where prudence ends and performance-chasing begins in the high-stakes world of retirement fund management.