Allstate Workers Claim Retirement Plan Lost Them Millions

Katherine Cutrone became the lead plaintiff in a class action lawsuit against her former employer, Allstate Corp. (Allstate). Cutrone filed the class action complaint last alleging current and former employees have lost more than $65 million in retirement savings because “Allstate failed to remove a suite of underperforming investment funds from its retirement plan.” Cutrone claims Allstate violated the Employee Retirement Income Security Act (ERISA).

“Defendants breached their fiduciary duties by failing to prudently select and monitor the [retirement] plan’s investment options. Specifically, they loaded the plan with poorly performing targeted retirement-age funds called the Northern Trust Focus Target Retirement Trusts and then kept these Funds on the Plan’s investment menu throughout the class period despite their continued underperformance,” a portion of Cutrone’s class action complaint reads.

The Northern Trust Focus Target Retirement Trusts have performed worse than 70% to 90% of its peer funds for nearly a decade, according to Cutrone. The funds have also consistently failed to meet their benchmark indexes since Northern Star launched them in 2010, according to the class action complaint.

Allstate’s plan provides retirement income for current employees, former employees and beneficiaries. Cutrone stated the insurance company has more than $5 billion in assets under management, with more than $763 million being invested among 11 Northern Trust funds.

Cutrone asked the presiding judge to order that Allstate make good on the losses it has caused her and similarly situated plan participants, disgorge any profits the company made by allegedly breaching its fiduciary duties and reform the plan to include “only prudent investments,” among other requests.

This entry was posted in glassBYTEs Headlines and tagged , , , . Bookmark the permalink.

2 Responses to Allstate Workers Claim Retirement Plan Lost Them Millions

  1. Helen Dunne says:

    I’m in for this

    • Helen Dunne says:

      Allstate has cheated their former employers in several dishonorable ways. I’ve been waiting for years to see a settlement reached in another case. While I worked the last
      10 years of 30, I was subjected to much pain and suffering while working some times seven days a week and 12/13 hours a day with no compensation. There was a settlement for overtime that did not even cover the amount of time I contributed or
      for the emotional and painful state I was in. I was afraid to file a lawsuit as I was afraid I would be fired. I was a dedicated employee of Allstate ago was also harassed and
      Treated with disrespect. Being the bread winner of my family I never would complain
      About the way the company was run from 1995 until now, when they have caused many people to lose there jobs, in this time of pandemic. It’s a shame that a good company is now run by money hungry share holders and I believe politics.

Leave a Reply

Your email address will not be published. Required fields are marked *