For Immediate Release: December 14, 2012
Contact: Joanna Hawkins or Leni Fortson
Phone: 215-861-5101 or 215-861-5102
Email: email@example.com or firstname.lastname@example.org
Release Number: 12-2393-PHI (EBSA 12-126)
US Labor Department sues Fairfax, Va.-based government contractor to
restore worker contributions to 401(k) plan
FAIRFAX, Va. – The U.S. Department of Labor has filed a lawsuit against Innovative Logistics Techniques Inc. for violating the Employee Retirement Income Security Act by failing to remit worker contributions and participant loan repayments to the company’s 401(k) plan.
From January 2007 to April 2011, the defendant failed to remit employee contributions to the plan, remitted certain contributions late and without interest and failed to segregate the plan assets from the general assets of the company. Additionally, the suit alleges that the company authorized the transfer of funds from the plan’s forfeiture account to pay fees for services that were unrelated to the provision of benefits under the plan.
Filed in the U.S. District Court for the Eastern District of Virginia, the suit seeks to restore all losses to the plan, including interest and opportunity costs. The suit also seeks to permanently bar the defendant from serving in a fiduciary capacity to any employee benefit plan covered by ERISA, and have an independent fiduciary appointed by the court, at the company’s expense, to manage the plan.
The department’s legal action resulted from an investigation by EBSA’s Washington District Office. It is being litigated by the department’s Regional Office of the Solicitor in Philadelphia.
Workers participating in employer-sponsored health and retirement benefit plans who feel that they have been denied a benefit inappropriately or have questions about benefits laws can contact an EBSA benefits adviser by visiting www.askebsa.dol.gov or calling 866-444-EBSA (3272).
Solis v. Innovative Logistics Techniques Inc. et al.
Civil Action Number: 12-1321
U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.