U.S. Department of Labor sues defunct Arkansas trucking company to protect participants’ 401(k) assets

Atlanta – The U.S. Department of Labor has sued Batesville Truck Line and Jet Transportation and the trustees of the company’s 401(k) plan for allegedly failing to administer the plan in violation of the Employee Retirement Income Security Act (ERISA).

Filed in the U.S. District Court for the Western District of Tennessee, the lawsuit alleges that after the company ceased operations in 1994, the defendants failed to terminate the 401(k) plan and ensure its assets were properly distributed to participants. The department alleges that the company and defendants Michael Mitchell, Elbert Mitchell and Z.T. Fortescue III failed to administer the plan.

“When companies and their executives fail to properly wind down the affairs of pension plans, participants are left stranded without the resources needed to access their retirement funds,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

The department is seeking a court order appointing an independent fiduciary at the defendants’ expense to arrange for the termination of the plan and distribution of its assets.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Solis v. Batesville Truck Line
(Civil Action Number Case 2:09-cv-02198-JPM-tmp)

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