Labor Department Sues Officer of Macedonia, Ohio Business For Failing to Properly Administer 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Macedonia, Ohio - The U.S. Department of Labor has sued the former president of now-defunct D.L. French Company Inc., Macedonia, Ohio, for failing to administer the company’s 401(k) profit sharing plan so that assets could be distributed to plan participants.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph Menez, director of the department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that Daniel French, president and owner of the company, violated his fiduciary duties to the savings plan when he failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants when the company ceased doing business in January 2005. D. L. French Company, which sponsored the plan for 11 workers, primarily manufactured water manifolds for the plastics industry.

The suit seeks to appoint an independent fiduciary to manage the plan, terminate it and distribute assets to eligible participants and beneficiaries.

The suit, filed in federal district court in Ohio, resulted from an investigation conducted by EBSA’s Cincinnati regional office. Employers and workers can reach the regional office at 859.578.4680 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Daniel French)
Civil Action No. 5:06-cv-01902-JG

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976