U.S. Labor Department Sues Cincinnati Company for Failing to Distribute 401(k) Funds When It Went Out of Business

Archived News Release — Caution: Information may be out of date.

Cincinnati, Ohio - The U.S. Department of Labor has sued Strategic Decisions Inc. Cincinnati, for failing to administer and terminate the company’s 401(k) 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 the data warehousing business, which served as plan administrator and fiduciary, failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants when the company ceased doing business in 1998.

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 Cincinnati, 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. Strategic Decisions, Inc.)
Civil Action No. 1:06cv653

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976