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US Labor Department sues Pittsburgh manufacturing company to protect 401(k) plan participants
PITTSBURGH – The U.S. Department of Labor has sued Liberty-Pittsburgh Systems Inc. of Pittsburgh and its chief executive officer, Kevin T. Weir, for failing to remit employee contributions to its 401(k) plan in violation of the Employee Retirement Income Security Act.
The lawsuit alleges that from January 2007 through December 2009 the defendants failed to remit employee contributions or participant loan repayments to the plan, and remitted certain contributions and loan repayments to the plan late without interest.
"Plan fiduciaries have a legal obligation to act in the best interest of plan participants, who invest their hard-earned wages to prepare for retirement," said Mabel Capolongo, regional director of the Labor Department's Employee Benefit Security Administration in Philadelphia. "The department will take all necessary steps to protect workers when that fiduciary obligation is not met."
Filed in the U.S. District Court for the Western District of Pennsylvania, the suit seeks to restore to the plan all losses and lost opportunity costs, and to permanently bar the company and Weir from serving in a fiduciary capacity to any employee benefit plan covered by ERISA.
The company manufactures forms and tagging systems for the laundry and dry cleaning industries.
This case is part of EBSA's national enforcement initiative to safeguard workers' contributions to 401(k) and health benefit plans. The department's legal action resulted from an investigation by EBSA's Philadelphia Regional Office. Employers and workers can contact that office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private sector pension and health plans. Additional information can be found at http://www.dol.gov/ebsa.
Solis v. Weir
Civil Action Number: 2:11-cv-00138-NBF
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