Profit-Sharing Plan Participants Lawsuit
Several employees of SS&C Technologies and former employees of DST Systems are filing claims against the firms, claiming violations of the Employee Retirement Plan Security Act (ERISA) in relation to an investment in the firm’s 401(k) profit-sharing plan, White, Graham, Buckley & Carr are representing the employees, which was featured in a Kansas City Business Journal article about how DST faces numerous claims over the handling of its profit-sharing plan.
Learn more about our work to address the damages caused by the DST Profit-Sharing Case here.
Contact UsOur attorneys are currently working with former employees of DST Systems to recover damages stemming from the profit-sharing case, including claims of:
- Breach of fiduciary duties
- Failure to divest or diversify investments
- Failure to confirm the Plan’s underlying investments were consistent with stated description
- Failure to prudently select and monitor the investment manager
- Failure to select and retain an investment manager with no selfish interest
- Failure to disclose complete and accurate material information
- Failure to determine reasonableness of compensation to investment manager
- Failure to investigate decisions affecting the plan
- Failure to represent, disclose or participate in actions on behalf of plan and participants
- Failure to advise participants
- Failure to take steps to timely recover losses
- Failure to adjust values of plan distributions for roll-over purposes
- Failure to take all actions prudent to protect interest of those who suffered losses
DST Profit Sharing Resource Center
CASE BACKGROUND
Case Background
- Canfield et al v. SS&C Technologies Holdings, Inc. et al: The plaintiffs filed the suit in federal court in Kansas City on behalf of all employees at the company who participate in its 401(k) profit-sharing plan.
Plaintiffs accused DST of breaching its fiduciary duty by not ensuring that the assets were adequately diversified to minimize risk of large losses and by not adequately disclosing the level of risk it took in investing the funds.
DST invested about 30 percent of the profit-sharing portion of the retirement plan’s assets in Valeant Pharmaceuticals International Inc. stock. Valeant has faced many allegations of price gouging and accounting irregularities related to how it reported earnings. Its stock peaked about $196 a share in 2015 but plummeted to a low of $8.31 a share earlier this year. The DST profit-sharing plan’s investment in Valeant fell from a high of about $415 million to about $22 million, causing a loss of $395 million for plan participants.
- View the docket here.
MEDIA RESOURCES
Media Resources
- Court’s Confirmation Signals Success for Hundreds of Claims: The Kansas City Business Journal discusses the firm’s arbitration win, where they secured more than $4.2 million for the plaintiffs.
- Company That Acquired DST Systems Sued Over Profit Sharing Plan Investment: PlanSponsor discusses the lawsuit against DST Systems over profit-sharing complaint.
- HFM Representing DST Profit-Sharing Plan Participants in Lawsuit:
- SS&C Technologies Sued Over Profit Sharing Plan Investment in Valeant Pharmaceuticals: PlanAdvisor outlines the lawsuit against SS&C Technologies over profit sharing investment in Valeant Pharmaceuticals after acquiring DST Systems.
- Nest eggs for thousands cracked with heavy bet on one bad stock, lawsuit says: The Kansas City Star details the lawsuit against DST Systems.
- DST, Ruane Cunniff Sued Again Over Valeant Stock in 401(k) Plan: Bloomberg Law details the lawsuit against DST Systems and Ruane Cunniff for profit-sharing plan.
- DST Hit With ERISA Suit Over Valeant Stock Drop: Law360 discusses the details of the profit-sharing plan claims against DST Systems.
- The gutting of DST Systems and what it means for Kansas City: The Pitch discusses layoffs at DST Systems, and outlines the profit-sharing lawsuit against the company.
- Employers Who Offer A Retirement Plan Have A Fiduciary Responsibility: Forbes discusses the fiduciary responsibility companies have when offering 401(k) plans, referencing DST case.
- Judge Extends Employment Arbitration Requirement to Claims Against Advisor: The National Association of Plan Advisors outlines the arbitration requirements in DST Systems profit-sharing case.