U.S. Department of Labor sues defunct Cherry Hill, N.J., company to protect participants of abandoned retirement plan

Cherry Hill, N.J. – The U.S. Department of Labor has filed a lawsuit to obtain appointment of an independent fiduciary to oversee the 401(k) plan of ABC Wireless Inc., a defunct company formerly located in Cherry Hill.

"Jeopardizing workers' retirement savings will not be tolerated by the Labor Department," said Mabel Capolongo, director of the department's Employee Benefits Security Administration (EBSA) in Philadelphia. "Employers cannot abandon 401(k) plans when a company goes out of business."

The company managed the plan until September 2004 when it ceased operations. Since that time, no individual or entity has taken fiduciary responsibility for the operation and administration of the plan and its assets. As a result, the plan's participants and beneficiaries have been unable to gain access to or information about their individual balances.

The suit, filed in the U.S. District Court for the District of New Jersey, seeks to appoint an independent fiduciary to terminate the plan and distribute plan assets to participants and beneficiaries.

As of June 30, 2008, the plan had nine participants and approximately $31,991.89 in assets.

The suit resulted from an investigation conducted by EBSA's regional office in Philadelphia. Employers and workers can contact that office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private sector pension and health plans. 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. ABC Wireless, Inc. 401(k) plan
Civil Action Number 1:09-CV-05004

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