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Daikin America Ditches Proposed Class Suit Over 401(k) Plan

May 4, 2021, 8:19 PM

Daikin America Inc. Tuesday convinced a federal judge in New York to throw out a proposed class action accusing the chemical manufacturer of mismanaging its 401(k) plan, because the plaintiffs failed to plead a plausible duty of loyalty claim.

Alabama residents Justin Brown and Telisa Lipscomb hoped to represent a class of investors who argued that Daikin breached its fiduciary duties under the Employee Retirement Income Security Act by filling the plan with expensive and poorly performing options.

Daikin sought to dismiss the complaint, arguing in part that the plaintiffs lacked standing to challenge funds they don’t personally hold.

But...

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