In a dramatic turn of events, a Colorado magistrate judge has issued a pivotal decision in the Dish Network ERISA suit, propelling the case forward with newfound vigor. The proposed class action, brought by a group of former Dish Network employees, alleges that the company unjustly loaded their $841 million retirement plan with underperforming funds. The lawsuit has taken a fresh breath of life, and while some claims have been dismissed, the battle rages on with intense legal fervor.
Dish Network ERISA Suit : Renewed Hope
U.S. Magistrate Judge Scott T. Varholak, in a report and recommendations filed on Monday, declared that the ex-workers have successfully addressed the shortcomings of their previous complaint, effectively revitalizing their Employee Retirement Income Security Act (ERISA) lawsuit. This pivotal decision means Dish Network, its board of directors, and its 401(k) plan committee will have to confront most of the allegations.
A Tale of Alleged Breach
The heart of the matter lies in the plaintiffs’ claims that Dish Network violated federal benefits laws by retaining and failing to adequately monitor the Fidelity Freedom Fund target date suite within their 401(k) plan. The initial complaint was dismissed in March due to a lack of evidence demonstrating that Dish Network’s monitoring process was inappropriate. However, Judge Varholak found that the new complaint presents a more robust argument.
