Perez v. New Generations Furniture Co. involving abandoned plan in McKenzie, Tenn.

Date of Action: Sept. 26, 2013

Type of Action: Complaint

Name(s) of Defendant(s): New Generations Furniture Co., New Generations Employee Retirement and Savings Plan, and Ben J. Gaines.

Allegations: The company ceased operations approximately June 2009. When the company ceased operations, neither the company nor Ben J. Gaines, a trustee of the plan, took steps to administer the plan or to ensure that the funds in the plan were appropriately distributed to terminated participants. Since then, the company and Gaines failed to administer the plan and have effectively abandoned it. As a result, participants are unable to receive information or gain access to their funds. As of March 31, 2010, the plan had approximately 147 participants and assets of approximately $102,117.90.

Resolution: The department is seeking to remove the defendants as fiduciaries to the plan, enjoin the defendants from engaging in further violations of Title I of Employee Retirement Income Security Administration, appoint an independent fiduciary to arrange for termination of the plan and distribution of its assets, and to provide such other relief as may be just and equitable.

Court: United States District Court for the Western District of Tennessee, Jackson Division.

Docket Number: 1:13-cv-01268

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