Wilmington Trust Targeted in 401(k) Investigation

Bright and early Sunday morning, the law firm of Stull, Stull & Brody announced that it has commenced an investigation relating to the 401(k) defined contribution retirement plan of Wilmington Trust Corporation.   

According to the press release, Stull, Stull & Brody says that “among other things,” it is investigating “whether fiduciaries of the Wilmington Trust Thrift Savings Plan, a 401(k) plan, may have violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by failing to disclose the Company’s true operating condition to participants and beneficiaries of the plans (including disclosures relating to the Company’s eroding loan quality, the heavy concentration of the Company’s loans in areas experiencing loan troubles, and growing cash shortages), by offering Company stock as an investment option under the plan when it was not prudent to do so, and/or by allowing an imprudent overconcentration of Company stock in the Company’s 401(k) plan.” 

As is customary in such announcements, the law firm proceeds to note that those who held Wilmington Trust stock in an individual account in the Wilmington Trust Thrift Savings Plan or employee stock purchase plan “…may, if you wish, consult with a representative of Stull, Stull & Brody at no cost or obligation.”

You can read more about the so-called “stock drop” suits in PLANSPONSOR’s magazine article, “It’s a Jungle Out There.”