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Information Regarding Recent Litigation Involving Fringe Benefit Group
In July of 2017, Fringe Benefit Group, Inc. was sued alleging that The Contractors Retirement Trust and The Contractors Plan Trust charge excessive fees for the administrative services it provides to our valued customers. The lawsuit has no merit and was dismissed by the court on November 7, 2017. The court gave the plaintiffs a short window to re-file their lawsuit, which they did on December 4, 2017. After review of this amended filing, we continue to believe the lawsuit is without merit and filed a motion to dismiss this amended complaint on January 15, 2018.
The suit was filed by three employees of one of our clients. Our client, their employer, is not a party to the litigation. The allegations in the lawsuit reflect a lack of understanding of the administrative services we provide and the compliance assistance that we offer our employers. The language in the complaint is not supported by any market data. We deny these allegations and are vigorously defending this matter.
Plaintiff class action lawsuits alleging excessive fees have become common in the ERISA litigation landscape. Most of these actions have not been successful. Many have been settled for a small fraction of the demanded amount to make the lawsuit go away and not because the defendant companies or financial institutions believed the lawsuits had any merit.
Since 1983, Fringe Benefit Group, Inc. has provided a turnkey arrangement to assist employers subject to prevailing wage laws. We believe that we offer the highest quality services to close to 2,000 employers that have sponsored plans through The Contractors Plan. The allegations in the recent complaint distort the fees, services and value we provide and are baseless.
Please let us know if you have any additional questions. If you would like to review the related documents and filings, please feel free to click on the links below.