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Release Date: December 23, 2008
Release Number: 08-1111-ATL (318)
Contact Name: Michael Wald
Phone Number: 404.562.2076

U.S. Labor Department sues defunct Memphis, Tennessee, heating and air conditioning maintenance company for abandoning 401(k) plan

Memphis, Tennessee – The U.S. Department of Labor has sued defunct Stephens Brothers Inc. of Memphis for abandonment of its 401(k) plan in violation of the Employee Retirement Income Security Act.

“It is inexcusable that this company’s former employees do not have access to their retirement savings,” said Rebecca Marshall, director of the Atlanta Regional Office of the department’s Employee Benefits Security Administration (EBSA), which investigated this case.

The suit alleges that Stephens Brothers effectively abandoned the plan when it ceased operations in 2003 without terminating the plan and distributing the plan’s assets to participants. Because the plan was abandoned, participants have been unable to gain access to their funds or receive information about their accounts. The suit asks the court to appoint an independent fiduciary to terminate the plan and distribute its assets to the plan’s10 participants.

Stephens Brothers was a heating and air conditioning maintenance company. The plan controls approximately $692,932 in assets, which are being held by an asset management company.

Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Stephens Brothers Inc.
(Civil Action Number 2:08-cv-02865-SHM-tmp)

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