She also rejected Clorox’s assertion that its actions complied with plan terms, stressing that fiduciaries cannot sidestep ERISA simply because a plan document permits certain actions. “If there is a breach, then abiding by the plan terms cannot save defendants,” she concluded.
Legal Battle Continues
A Clorox spokesperson declined to comment on the ruling Tuesday. Attorneys representing McManus did not immediately respond to requests for comment.
McManus is represented by Matthew B. Hayes and Kye D. Pawlenko of Hayes Pawlenko LLP.
As the lawsuit moves forward, Clorox faces mounting scrutiny over its handling of employee retirement funds—a case that could set a significant precedent for 401(k) fiduciary responsibilities nationwide.
