Schneider Wallace Appointed Class Counsel for 200,000 TIAA Retirement Account Members
Schneider Wallace was appointed class counsel for approximately 200,000 participants in Teachers Insurance and Annuity Association (TIAA) retirement accounts, after the judge certified the class. The class certification covers nearly 8,000 retirement plans.
U.S. District Judge J. Paul Oetken stated: “Haley has made a sufficient showing of ascertainability for class certification; TIAA’s contentions will have to wait for a later stage”.
The complaint alleges that TIAA violated the Employee Retirement Income Security Act (ERISA) by using an unlawful retirement loan process that allowed TIAA to collect income from prohibited transactions. Specifically, the allegations include claims TIAA owes interest on the invested collateral where the interest due on the loans exceeded the borrowers returns.
The certified class includes all members of TIAA retirement plans governed by ERISA, dating back to 2011, where borrowing participants provided 110% of the principal balance of the loans and TIAA invested in their general account.
The Plaintiff is represented by Todd Schneider of Schneider Wallace Cottrell Konecky LLP.
Melissa Haley et al. v. Teachers Insurance and Annuity Association of America, case number 1:17-cv-00855, U.S. District Court for the Southern District of New York.
ERISA Class Action
ERISA is a federal law providing regulations of and protections for members of employee-sponsored benefit plans and retirement accounts. The law sets forth disclosure rules, procedural rules, and fiduciary duties owed to the members by fund managers. Violations of ERISA regulation, such as a breach of fiduciary duty in not awarding all owed interest to a participant, can result in claims brought against fund management.
One way to bring a claim on behalf of all the participants similarly injured is through a class action lawsuit, bringing together all members who have suffered a similar injury from the improper action. A breach of fiduciary duty, such as not paying interest owed, are examples of a shared injury that can form the basis of a class action.
Schneider Wallace – ERISA Law Firm
Schneider Wallace Cottrell Konecky LLP is a nationally known business litigation law firm that represents employees and 401(k) plans in complex litigation matters. We prepare meticulously for litigation and assertively advocate for our clients’ best interests when disputes arise.
During the past 25 years, our firm has been at the forefront of employee benefits litigation.