U.S. Labor Department settles lawsuit with Tampa, Florida-based MACH Americas regarding abandoned 401(k) plan

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Labor Department’s Employee Benefits Security Administration (EBSA) and Multinational Automated Clearing House (MACH) Americas, Valrico, Florida, have agreed to settle a lawsuit arising from the company’s abandoned 401(k) plan.

According to the consent judgment filed in U.S. District Court in Tampa, MACH Americas has agreed to terminate the plan and distribute its assets of approximately $17,000 to four plan participants.

“The law states that plans must be managed by employers or plan fiduciaries,” said Howard Marsh, director of the EBSA Regional Office in Atlanta. “Our case was aimed at assuring that workers and their families have someone with authority to conclude plan business and distribute assets to eligible participants.”

Filed under the Employee Retirement Income Security Act, the suit alleged that MACH Americas failed to terminate the plan and make distributions to participants when it ceased operations in 2001. The suit also charged that the company failed to administer the plan and effectively abandoned it.

As a result of the alleged plan abandonment, participants have been unable to receive information about their funds or gain access to them.

Employers and workers can reach the EBSA regional office in Atlanta at 404.562.2156 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private-sector retirement and health plans.

In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Multinational Automated Clearing House Americas, Inc.)
Civil Action No. 8:07-CV-00202-T-26EAJ)

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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