News Brief
Federal judge appoints independent fiduciary to distribute $103K in assets to participants in defunct Ohio Irish pubs’ retirement plan
Date of Action: Nov. 1, 2023
Type of Action: Employee Retirement Income Security Act default judgment
Company/Owners: Claddagh Development Group LLC, operating as Claddagh Irish Pubs
Claddagh Development Group LLC Employee Savings Trust
Background: The Acting Secretary of Labor filed a complaint with the U.S. District Court for the Northern District of Ohio on June 15, 2023, to distribute the assets of the Claddagh Development Group LLC Employee Savings Trust, a 401(k) retirement plan.
The restaurant and bar chain filed for bankruptcy in 2006 and began failing to administer the 401(k) plan and its assets in 2007. At the close of the bankruptcy, the court did not terminate the plan or appoint new fiduciaries which prevented participants from withdrawing their funds.
Investigators with the department’s Employee Benefits Security Administration discovered that as of March 18, 2022, the plan contained 65 participant accounts and $103,542 in assets, and that an independent fiduciary would need to begin the process of distributing assets to the participants.
Employers and workers can reach EBSA toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Learn more about EBSA.
Quote: “The appointment of an independent fiduciary will make sure participants in the Claddagh Development Group, LLC Employee Savings Trust will receive their hard-earned retirement contributions,” said Employee Benefits Security Administration Regional Director L. Joe Rivers in Cincinnati. “Often, employees are unaware of how to retrieve their funds when a business ceases operations. Individuals with questions on retirement fund management should contact the Employee Benefits Security Administration for assistance.”
Docket Number: Case No. 1:23-cv-01198
