Case News

Fringe Benefit Group Excessive Fee litigation

On July 6, 2017, the firm filed Chavez v. Plan Benefit Services, Inc. in the United States District Court for the Western District of Texas, along with co-counsel Altshuler Berzon and Bruckner Burch. Defendant Fringe Benefit Group and its subsidiaries, Plan Benefit Services, Inc. and Fringe Insurance Benefits, Inc., operate the Contractors and Employees Retirement Trust (“CERT”) and the Contractors Plan Trust (“CPT”) which cover more than 125,000 workers. CERT and CPT are marketed to non-union construction industry employers as a vehicle to get credit for payment of prevailing wages on lucrative public works projects, but defendants charge sky-high fees for their administrative and marketing services, causing workers to pay more for health care, receive less wages, and accrue less retirement savings than they should have. The plaintiffs are janitors and floor technicians who are members of IUOE Local 351 in El Paso, Texas. On behalf of a proposed class, they allege that defendants have breached their fiduciary duties and engaged in prohibited transactions. For more information, please see the complaint or contact Nina Wasow or Catha Worthman.