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Home Depot Says $140M ERISA Class Action Should Be Axed

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Home Depot Says $140M ERISA Class Action Should Be Axed
The Home Depot Inc. argued that a Georgia federal district court should dismiss the pending $140 million ERISA class action as per its summary judgment motion, as a better 401(k) plan with lower fees for its employees does not exist. The Home Depot 401(k) plan is the largest of its kind, holding about $9 billion in investments for hundreds of thousands in employees.  In response, plan participants argued that they should be granted summary judgment on some of their claims that:
  • The Home Depot breached its fiduciary duty by allowing revenue-sharing between the plan record-keeper and one of the plan’s investment firms; 
  • The Home Depot is liable for failing to monitor plan fees; and 
  • The Home Depot is liable for failing to remove underperforming funds from the plan and investigate alternative funds. 
Plan participants originally sued The Home Depot and its plan advisors in 2018, alleging that they had breached their fiduciary duties and violated ERISA. The judge dismissed the plan advisors as parties from the case in 2019 and granted class certification to the more than 300,000 current and former employees who participated in the plan since 2012.  In Pizarro et al. v. The Home Depot Inc. et al., case number 1:18-cv-01566, U.S. District Court for the Northern District of Georgia, the two sides also sparred on evidentiary matters, including whether the plan participants should be allowed to present expert testimony by an economist and an investment consultant. Ultimately, the judge allowed the testimony over The Home Depot’s objection.  Likewise, the judge chastised the parties for disagreeing as to which documents they should file under seal, characterizing the issue as a waste of the court’s time and “aggravating.” The continued failure of the parties to reach an agreement on the issue would result in the appointment of a special master, who then would hold a hearing on the issue. He promised a ruling on the cross-motions for summary judgment by the end of March and ordered the parties to mediate the case before that date.  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.
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