A class action lawsuit has been filed in the United States
District Court for the Eastern District of Michigan, Southern
Division, against Xerox HR Solutions, LLC ("Xerox HR"). The
Complaint seeks to certify the Class on behalf of participants in
three of Ford Motor Company's retirement plans: Ford Retirement
Plan, Ford Motor Company Savings and Stock Investment Plan for
Salaried Employees, and Ford Motor Company Tax-Efficient Savings
Plan for Hourly Employees, and all other plans for which Xerox HR
provides recordkeeping services and for which Financial Engines
Inc. ("Financial Engines") provided investment advice to
The complaint claims that Xerox HR, a company that provides
platform and recordkeeping services for the administration of
retirement plans, including those of Ford Motor Company, among
others, was involved in an illegal kickback scheme with Financial
Engines, a company that offers advice for saving and investing for
retirement to plan participants.
Ford and other companies offer employees the option to pay for
Financial Engines' investment advisory services. In order to be
included as the investment advice service provider on Xerox HR's
platform, Financial Engines agreed to pay Xerox HR a significant
percentage of the fees it collected from 401(k) plan participants.
In order to meet Xerox HR's demand for a kickback, Financial
Engines charged excessive fees to employees who paid for the advice
The complaint alleges that Xerox HR conduct violated the
fiduciary duties and prohibited transaction rules imposed by the
Employee Retirement Income Security Act of 1974 ("ERISA").
Berger & Montague, P.C., a firm based in Philadelphia, PA,
represents the plaintiffs in the lawsuit. The firm represents
plaintiffs in complex and class action litigation and is
consistently ranked as one of the top plaintiffs' law firms in the
United States by many publications. Berger & Montague,
P.C. has extensive experience representing retirement plan
participants, investors, and consumers in class action litigation,
and the firm has played lead roles in major cases for over 40 years
resulting in recoveries of many billions of dollars for their
clients and the classes they represent. Further information
about Berger & Montague, P.C. can be found at www.bergermontague.com.
In addition to Berger & Montague, P.C., the plaintiffs are
represented by Schneider Wallace Cottrell Konecky Wotkyns LLP,
which represents retirement plan participants, workers and
consumers in class action litigation matters around the
country. For 24 years, the firm's attorneys have handled
matters involving ERISA benefits, workplace benefits, disability
rights, employment discrimination issues and consumer
rights. Schneider Wallace has offices in Emeryville,
California; Scottsdale, Arizona; and Houston, Texas. On the
The Miller Law Firm, P.C. has acted as local counsel, and also
is experienced with ERISA claims.
Participants in 401(k) plans who opted to receive investment
advice through Financial Engines may be members of the class and
can obtain more information by calling 215.875.3000. Participants
can also contact Todd Collins at 215.875.3040, email@example.com, or Robin
Switzenbaum at 215-875-4679, firstname.lastname@example.org.
A copy of the complaint is available here.