However, Judge Chesney highlighted discrepancies, noting the dissenting opinion of the workers’ expert, Robert Conner. Conner argued that revenue sharing detracted from investment returns and intertwined administrative costs with participant returns, undermining Salesforce’s rationale.
Dispute over Damages
Salesforce disputed the $5.2 million damages claim, challenging Conner’s methodology and data accuracy. Judge Chesney, however, deemed the discrepancy a factual dispute rather than grounds for summary judgment, signaling the complexity of the case.
Salesforce Can’t Ax Vast Class Suit Over 401(k) Management : Legal Odyssey
The lawsuit, initiated by former Salesforce employees Tim Davis, Gregor Miguel, and Amanda Bredlow in March 2020, encountered legal twists. Initially dismissed in October 2020, the Ninth Circuit resurrected the case in April 2022, underscoring the plaintiffs’ credible allegations of fiduciary negligence.
Class Certification
Following remand, the workers sought class certification, encompassing individuals participating in Salesforce’s 401(k) plan from March 11, 2014, to July 19, 2019, and investing in specified funds. Judge Chesney granted certification in February 2023, potentially encompassing 10,000 to 50,000 plan participants.
Salesforce Can’t Ax Vast Class Suit Over 401(k) Management : Awaiting Responses
As the legal battle intensifies, representatives for both sides remained unavailable for immediate comment, setting the stage for a protracted legal showdown.
