On June 15, 2018, the U.S. District Court for the Western District of Texas denied in part a motion to dismiss by Fringe Benefit Group and its subsidiaries, Plan Benefit Services, Inc. and Fringe Insurance Benefits, Inc. Plaintiffs Heriberto Chavez, Jose Escarcega, and Jorge Moreno – who are represented by FJWW along with co-counsel Altshuler Berzon LLP and Bruckner Burch PLLC – will now proceed with their claims that defendants breached their fiduciary duties by charging excessive fees and engaging in self-dealing in connection with Plaintiffs’ health and retirement plans, which were provided through the Contractors and Employees Retirement Trust (“CERT”) and the Contractors Plan Trust (“CPT”). The court found that Defendants are fiduciaries because they exercise control over plan assets, and Plaintiffs have standing to pursue their claims because they suffered an alleged loss of benefits as a result of Defendants’ collection of excessive fees. The case is brought on behalf of a proposed class of workers in plans that participate in CERT and CPT. For more information, read the court’s Order or the First Amended Complaint, or contact Nina Wasow or Catha Worthman.
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