U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Denver-area employer

Archived News Release — Caution: Information may be out of date.

Denver - The U.S. Department of Labor has filed a lawsuit asking the U.S. District Court in Denver to appoint an independent fiduciary to oversee the abandoned Across Media Networks LLC 401(k) Plan.

The suit alleges that Across Media Networks LLC, which operated in Golden and Littleton, Colorado, abandoned the plan and failed to ensure the distribution of more than $52,000 in plan assets to 40 plan participants in violation of the Employee Retirement Income Security Act. The suit seeks to remove Across Media Networks LLC as the plan’s named fiduciary and appoint an independent fiduciary to distribute the plan’s assets.

“The department acts to help workers get their benefits when plan assets are either misused or the plans are abandoned,” said Steve Eischen, regional director in Kansas City for the Labor Department’s Employee Benefits Security Administration (EBSA), which investigated the case.

Across Media Networks LLC, which ceased operations in 2002, was in the cable network and program distribution business.

Retirement plans become orphan plans when they are abandoned by all fiduciaries designated to manage and operate them and their assets. As a result of the abandonment, participants and beneficiaries are unable to communicate with the plan fiduciary or obtain distributions from their accounts.

Employers and workers can reach EBSA’s Kansas City Regional Office at 816.426.5131 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans.

Chao v. Across Media Networks LLC 401(k) Plan
Civil Action Number: 07-CV-01063-MSK-MEH

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Archived News Release — Caution: Information may be out of date.