In Waldner v. Natixis Investment Managers LP et al., filed in the U.S. District Court for the District of Massachusetts, a federal judge refused to grant the defendants’ motion to dismiss the case in December of 2021. Plaintiff plan participants filed the lawsuit as a proposed class action alleging Natixis Investment Managers LP (“Natixis”), a French corporate and investment bank, of violating ERISA and federal benefits law. Plaintiffs claimed Natixis subjected its $440 million 401(k) plan to poorly performing mutual funds and excessive plan-related fees.
U.S. District Judge Leo T. Sorokin’s order said that plaintiffs, led by former plan participant Brian Waldner, had sufficiently pleaded their case against Natixis. Judge Sorokin said Waldner had made a plausible claim that Natixis “selected and managed the funds in the plan with imprudence and disloyalty” in violation of federal law. “The court finds that the plaintiffs sufficiently state a claim for breach of the duties of prudence and loyalty to survive defendants’ motion to dismiss,” Judge Sorokin wrote.
The suit, filed in February 2021, includes more than 1,500 retirement plan participants. The primary allegations in the suit involve the mismanagement of employees’ 401(k) retirement plan, the breach of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”), and self-dealing through the act of offering more expensive proprietary funds to retirees. The suit also contains allegations that about 60% of the fund options were proprietary funds, which performed poorly and were more expensive than other nonproprietary options.
Natixis filed a motion to dismiss the case in June, denying allegations that the company had managed its retirement plan to facilitate the promotion of its own mutual fund business. Natixis also claimed that the plaintiffs’ underperformance claims were related to a small subset of funds offered to retirees during a short period. The company also accused the plaintiffs of using incorrect estimations of plan fees.
Judge Sorokin rejected these claims, pointing out the established case that plaintiffs still met constitutional standing requirements if they sued about the mismanagement of funds in which they had no personal investment. The judge also acknowledged that Waldner had made errors in the fee calculations. However, the correct fee calculations were only a fraction of a percent less than initially stated, and “such differences do not, at this stage in the proceedings, meaningfully affect the court’s conclusion” that the complaint could survive a motion to dismiss.
Kelly Cameron, a Natixis spokeswoman, said in a statement: “We believe the lawsuit is entirely without merit, and Natixis Investment Managers will defend itself vigorously against the claims. Our retirement savings plan offers employees a diverse lineup of investment options, which are rigorously reviewed to ensure reasonable fees and solid investment returns.”
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
Latest posts by Hall Benefits Law, LLC (see all)
- Fifth Circuit Considers Arbitration Clause in ERISA Claim - March 20, 2026
