April 14, 2014 – ABB, Inc., Cary, NC, hired Bank of America Merrill Lynch as record keeper for two 401(k) plans, said Melissa London, a spokeswoman for ABB.
Bank of America Merrill Lynch is replacing Fidelity Investments, effective in May. Ms London declined to provide details. Representatives from Fidelity Investments and Bank of America Merrill Lynch declined to comment.
The change in record keepers is related to a long-running class-action lawsuit involving participants and former participants of the ABB plans with aggregate assets about $1.75 billion, who alledge several fidicuary breaches by ABB and Fidelity in the administration of the plans.
As part of a decision on March 31, 2012, a federal district court judge in Jefferson City, MO, ordered ABB to conduct an RFP for a record keeper within 18 months. Fidelity was permitted to rebid. For investments in the plans’ menus, “ABB shall choose the share class of investments that has the lowest expense ratio,” the court said.
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