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Release Date: 06/05/1996
Release Number: V-212
-CINN
Contact Name: :Joseph Menez
Phone Number:
606.578.4680 |
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Three trustees of the J.W. Harris Co., Inc.,
Profit Sharing Plan in Cincinnati, Ohio, failed to diversify the investments of
the plan to minimize risk of large losses, according to a lawsuit filed by the
U.S. Department of Labor. |
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Named as defendants in the lawsuit are trustees Joseph W. and
Gordon L. Harris, Lawrence S. Glaser and the company J. W. Harris Co., Inc.
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According to the lawsuit, the trustees allegedly
concentrated up to 30 percent of plan money in Merck common stock in violation
of the Employee Retirement Income Security Act (ERISA). As of March 31, 1992,
the plan held shares of Merck common stock with a market value of $2,361,356,
which represented 30 percent of the plans's total assets of $7,780,521. The
company was charged with failing to correct the improper actions of the
trustees. |
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The lawsuit asks the court to order the trustees
to diversify the plan investments in accordance to ERISA and reimburse the plan
with interest for any losses that resulted for breaches committed. |
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The case resulted from an investigation by the
department's Cincinnati Regional Office of the Pension and Welfare Benefits
Administration into violations of ERISA. |
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The complaint was filed on June 4 in federal
district court in Cincinnati, Ohio. |
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Reich v. J.W. Harris Co., Inc. et al
Civil
Action No. C-1-96-568 |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7755. |
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