Alabama Pharmaceutical Companies And President Ordered To Restore $29,974 In Pension Assets

Archived News Release — Caution: Information may be out of date.

Atlanta, Georgia - Two subsidiaries of Seagen Pharmaceuticals, Inc., and the company’s president were ordered to restore $29,974.77 to the Seatrace Pharmaceuticals, Inc. 401(k) plan in Gadsden, Alabama, as restitution for using plan assets to pay corporate operating expenses.

Under the judgment, entered on Nov. 14 in federal district court in Birmingham, Alabama, Larry Lefoldt was appointed to distribute the plan’s assets to current and former participants and to terminate the plan. The defendants also were permanently barred from service to plans governed by the Employee Retirement Income Security Act (ERISA).

On February 5, 2001, the department sued Seatrace Pharmaceuticals, Inc., Seatrace DM, Inc., and Oscar Hugh Campbell. The suit alleged that the defendants failed to forward participants’ contributions in a timely manner, did not forward the salary deferrals of participants to the plan and used plan assets to pay the operating expenses of Seatrace Pharmaceuticals.

Seatrace Pharmaceuticals and Seatrace DM, Inc., are subsidiaries of Seagen. Campbell is president of all three companies as well as trustee and administrator of the 401(k) plan. As of December 31, 1999, the plan covered 14 active participants and had $33,054 in assets.

“Our goal is to assure that consumers know the department is only a phone call away to help protect the benefits promised by employers,” said Howard Marsh, director of the Atlanta regional office of the department’s Pension and Welfare Benefits Administration. “Employers and workers can reach us at 404. 562.2156 for help with any problems relating to pension and health plans provided in the private sector.”

(Herman v. Seatrace Pharmaceuticals, Inc.
Civil Action No. 01 BU 344-M)

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Archived News Release — Caution: Information may be out of date.