Chevron wins dismissal of claims of poor savings plan oversight
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
A Chevron gas station sign is pictured at one of their retain gas stations in Cardiff, California October 9, 2013. REUTERS/Mike Blake
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
NEW YORK (Reuters) - A U.S. judge has dismissed a lawsuit by Chevron Corp (NYSE: CVX) workers who said the oil company breached its fiduciary duties by putting costly and poorly performing investment options in a $19 billion employee savings plan.
In a decision on Monday, Chief Judge Phyllis Hamilton of the U.S. District Court in Oakland, California, wrote that the workers failed to raise a "plausible inference" of wrongdoing.
Hamilton gave the plaintiffs until Sept. 30 to file an amended complaint.
"The mere fact that the fund's price dropped is not sufficient to state a claim for breach of fiduciary duty," she wrote.
The judge also said it was acceptable for the plan to offer a money market fund rather than a higher-return stable value fund for plan participants seeking to preserve capital.
Neither Jerome Schlichter, whose firm represents the plaintiffs, nor a spokesman for San Ramon, California-based Chevron immediately commented.
Schlichter's St. Louis firm has pursued many lawsuits accusing companies of mismanaging 401(k) and other retirement plans. This month it also brought similar claims against a number of major universities.
The case is White et al v. Chevron Corp et al, U.S. District Court, Northern District of California, No. 16-00793.
(Reporting by Ross Kerber; Editing by Lisa Von Ahn)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Chevron Rolls out New, Bigger and Better Delo 400 Product Line and its Next Generation Engine Oil Chemistry – ISOSYN Advanced Technology
- Former astronaut Buzz Aldrin to stay in New Zealand until lungs clear
- Trump complains in tweets about Chinese policy after Taiwan call raises hackles