Labor Department files suit to appoint independent fiduciary to distribute profit-sharing plan assets of defunct New Jersey health food supplier

Date of Action: April 26, 2016

Name(s) of Defendants: Island Organics Profit-Sharing Plan
Bank of America

Allegations:  An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found the fiduciary of a profit-sharing plan of now-defunct Quality Botanical Ingredients Inc. failed to terminate the plan formally when the company ceased all business operations in December 2002.

The company sold its assets to Health Sciences Group Inc., which also ceased to exist.

As of May 17, 2010, the plan had 29 participants and a total of $8,504 in assets, currently held by Bank of America.

Resolution: The lawsuit seeks a court order to appoint an independent fiduciary to administer the plan, distribute plan assets to all affected participants and terminate the plan.

Court: U.S. District Court for the District of New Jersey

Docket Number: 2:16-cv-02346-JLL-JAD

Background: Once based in South Plainfield, Quality Botanical Ingredients, Inc. manufactured, processed and supplies bulk botanical and nutritional ingredients to the food, herbal, pharmaceutical, and health and beauty care industries. Founded in 1976, the company also had a warehousing facility in Las Vegas.