Former Employees Accuse Duke of Misusing Forfeitures
Former employees allege that Duke University chose not to use forfeited funds to reduce retirement plan expenses, even though contributions had already been offset.
A complaint has been filed against Duke University and its investment advisory, accusing them of misusing forfeitures in the Duke University Faculty and Staff Retirement Plan.
Complaint Details
The complaint, Duke University et al., filed in U.S. District Court for the Middle District of North Carolina, alleges that Duke University:
- Violated the Employee Retirement Income Security Act by breaching its fiduciary duties
- Violated ERISA’s anti-inurement provision
- Engaged in prohibited transactions
According to the complaint, the defendants failed to follow a prudent process in allocating forfeited funds in a loyal or timely manner, costing participants millions of dollars.
Author's summary: Duke University faces lawsuit over misusing forfeited funds.