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United States District Court for the District of Massachusetts
March 27, 2020, Filed
CIVIL ACTION NO. 18-12122-WGY
[*196] MEMORANDUM & ORDER
Kevin Moitoso, Tim Lewis, Mary Lee Torline, and Sheryl Arndt (collectively, the "Plaintiffs") are former employees of FMR LLC or its affiliates and beneficiaries of the Fidelity Employers' defined contribution 401(k) retirement plan, the Fidelity Retirement Savings Plan (the "Plan"). Pls.' Fourth Am. Compl., ("Compl.") ¶¶ 1, 18-21, [*197] 46, ECF No. 77. They have brought this lawsuit pursuant to 29 U.S.C. §§ 1132(a)(2)-(3) on behalf of a certified class of former Fidelity employees, and on behalf of the Plan itself, asserting breaches of fiduciary duty in violation of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended, 29 U.S.C. § 1001 et seq.. Compl. ¶¶ 15, 127-162; Stipulation and Order Regarding Class Certification ("Class Cert."), ECF No. 83
The Plaintiffs sued two groups of defendants (collectively, the "Defendants" or "Fidelity"). Compl. ¶ 2. The first group consists of the Plan's named fiduciaries: FMR LLC, FMR LLC's [**3] Board of Directors, FMR LLC Funded Benefits Investment Committee ("FBIC"), and FMR LLC Retirement Committee ("Retirement Committee) (collectively, the "Plan Fiduciaries"). Id. ¶¶ 2, 22-28. The second group consists of the plan's sponsor, FMR LLC, and the non-fiduciaries Fidelity Management & Research Company ("FMR"), FMR Co., Inc. ("FMRC"), and Fidelity Investments Institutional Operations Company, Inc. ("FIIOC") (collectively, "Fidelity Entities").1Id. ¶¶ 2, 29-34.
The Plaintiffs first bring claims against the Plan Fiduciaries for breach of the fiduciary duties of loyalty and prudence in violation of ERISA § 404, 29 U.S.C. § 1104(a)(1)(A)-(B), (D) (count I). Compl. ¶¶ 127-134. The Plaintiffs further accused the Plan Fiduciaries of breaching the duty of impartiality, in violation of 29 U.S.C. § 1104(a) (count II), but later withdrew that claim without prejudice. Compl. ¶¶ 135-141; Pls.' Opp'n Defs.' Mot. Summ. J. ("Pls.' Opp'n") 10, ECF No. 154. The Plaintiffs also accuse the Plan Fiduciaries of engaging in prohibited transactions with a fiduciary in violation of 29 U.S.C. § 1106(b) (count III). Compl. ¶¶ 142-147. The Plaintiffs charge FMR LLC with failure to monitor the Plan Fiduciaries (count IV), id. ¶¶ 148-154, and seek from all the Fidelity Entities equitable [**4] disgorgement of profits (count V), id. ¶¶ 155-162. See 29 U.S.C. §§ 1109(a), 1132(a)(2)-(3).
Fidelity asserts as an affirmative defense that all of the Plaintiffs' charges are not only barred by a prior court-approved class action settlement but are also time-barred. Defs.' Supp. Mem. Summ. J. ("Defs.' Mem.") 9-12, ECF No. 140. Additionally, Fidelity argues that it has not violated any fiduciary duties as matter of law. Id. at 13-20. The two parties agreed to a case stated hearing on some (but not all) issues, which this Court conducted on November 20, 2019.2 Joint Letter from Pls.' and Def.'s Regarding Nov. 7, 2019 Sum. J. Proc. ("Case Stated Letter"), ECF No. 209; Electronic Clerk's notes, ECF No. 221.
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451 F. Supp. 3d 189 *; 2020 U.S. Dist. LEXIS 53656 **; 2020 WL 1495938
KEVIN MOITOSO, TIM LEWIS, MARY LEE TORLINE, and SHERYL ARNDT, individually and as representatives of a class of similarly situated persons, and on behalf of the FIDELITY RETIREMENT SAVINGS PLAN, Plaintiffs, v. FMR LLC, FMR LLC FUNDED BENEFITS INVESTMENT COMMITTEE, FMR LLC RETIREMENT COMMITTEE, FIDELITY MANAGEMENT & RESEARCH COMPANY, FMR CO., INC., and FIDELITY INVESTMENTS INSTITUTIONAL OPERATIONS COMPANY, INC., Defendants.
Prior History: Moitoso v. FMR LLC, 410 F. Supp. 3d 320, 2019 U.S. Dist. LEXIS 175093 (D. Mass., Oct. 8, 2019)
fiduciary, monitor, funds, fiduciary duty, recordkeeping, Settlement, expenses, mutual fund, window, brokerage, breached, Credits, proprietary, discretionary, losses, Plaintiffs', prudent, plan participant, self-directed, investigate, employees, offering, parties, benefits, sponsor, courts, prohibited transaction, settlement agreement, brokerage account, mandatory
Civil Procedure, Summary Judgment, Motions for Summary Judgment, Cross Motions, Business & Corporate Compliance, ERISA, Fiduciaries, Fiduciary Responsibilities, Judgments, Preclusion of Judgments, Res Judicata, Pensions & Benefits Law, Fiduciary Liability, Prohibited Exculpation, Fiduciary Responsibilities, Duty of Prudence, Duty of Loyalty, Prohibited Transactions, Exemptions, Civil Litigation, Causes of Action, Breach of Fiduciary Duty, Remedies, Equitable Relief, Parties in Interest, Pensions & Benefits Law, Fiduciaries, Remedies