About the Firm

McTigue & Porter LLP represents participants in traditional pension plans, 401(k) salary deferral plans, savings plans, and Employee Stock Ownership Plans (ESOPs). The firm confines itself to the litigation of complex class actions. The typical action alleges violations of federal pension law, known as ERISA. The emphasis is on representing and protecting employees in pension plans when the plans have lost a significant part of the plan’s assets because the plan’s employer-fiduciaries and trustees, entrusted with management of the plan, failed to live up to their obligations under applicable law.

We are likely the first law firm, years before the Enron, WorldCom, and Global Crossing scandals, to recognize the need for lawyers to protect baby boom generation employees against the growing risks of imprudently-invested 401(k) and Employee Stock Ownership Plans. These plans are allowed by federal law to invest 100% of their assets in the company that sponsors the 401(k) Plan. By contrast, federal pension law prevents the older style, defined benefit pension plans, typical for the post-World War II unionized workforce, from investing more than 10% of their assets in the company that sponsors the plan. The risk to 401(k)-type plan participants is magnified because the federal Pension Benefit Guarantee Corporation (PBGC) insures older style pension plans, but does not insure 401(k)s and ESOPs. The threat of litigation serves as some deterrent to poor investment by older-style plans. There is no such deterrent to imprudent investment by 401(k) and similar plans.

The risk to retirement security from imprudent investment of 401(k) and similar plans is large and growing. In the early 1990s, the value of retirement assets in 401(k) and similar plans eclipsed the value of assets in the traditional pension plans.

The Firm’s representative cases include the following:

Presley v. CHH, et al., 97-cv-04316 (SC) (N.D. California) (bankrupt plan sponsor). CHH, was the Los Angeles holding company for the Broadway, Emporium, Capwells, and Weinstocks department stores, with more than 24,000 employees in its 401(k) plan. More than half of the plan’s assets were invested in CHH stock when the chain filed for bankruptcy. Nearly $39 million was recovered for the plan from defendants.

Blyler v. Agee, et al., CV97-0332-(BLW) (D. Idaho) (bankrupt plan sponsor). This litigation involved pension plans with 8,000 employees sponsored by Morrison Knudsen Corporation which declared bankruptcy in 1996.

Koch v. Dwyer, et al., 98-cv-5519 (RPP) (S.D. New York) (bankrupt plan sponsor). This litigation involved JWP, Inc., a S&P 500 company that declared bankruptcy. A $6.4 million settlement was reached in 2002 on behalf of JWP’s pension plan.

In re CMS Energy ERISA Litigation, 02-cv-72834 (GCS) (E.D. Mich.). This litigation, on behalf of more than 10,000 pension plan participants, involves a former Detroit based utility. A $28 million settlement was reached in this litigation.

In Re Computer Associates ERISA Litigation, CV-02-6281 (TCP) (E.D. New York). Class action on behalf of Computer Associates 401(k) plan after Computer Associates revealed questionable accounting.

In Re McKesson HBOC, Inc. ERISA Litigation, C 00-20030 (RMW) (N.D. Calif.). Plan with 8,000 participants. $23 million settlement.

Sherrill v. Federal Mogul Corp. Retirement Programs Committee, et al., 04072949 (E.D. Michigan) (plan sponsor bankruptcy with asbestos liability). Plan with 12,000 participants. $12.75 million settlement.

The firm has been involved in litigation on behalf of more than 130,000 pension plan participants which has settled by defendants for more than $125 million. Many lawsuits involved allegations of fiduciary breaches with respect to a pension plan sponsored by a S&P 500 or similar company.

The firm currently litigates other cases on behalf of still more participants throughout the United States on behalf of thousands of other pension plan participants, in both public and private sector plans, who have lost retirement assets due to a trustee’s or fiduciary’s breach of fiduciary duty.

The Defendants in these cases include some of the nation’s larger banks and mutual funds as well as prominent individuals in the financial, corporate, and political world who have served as fiduciaries of the plans. The lawsuits allege a variety of federal pension law violations, including that fiduciaries of these plans failed to perform their fiduciary duties to the funds and their pension plan members as required by federal law, participated in breaches of fiduciary duty, including co-fiduciary breaches, and engaged in prohibited transactions, or conflicts of interest, under federal pension law.

The events of late 2001 and the first half of 2002, including the financial collapse and bankruptcy filings by the ENRON, WorldCom and Global Crossing confirm the risks that participants in defined contribution pension plans are exposed to because of large portfolios of Company Stock.

The nature of the risk to 401(k) plan participants was brought to the attention of the United States Department of Labor in 1997 by Mr. McTigue when he was invited to testify before the Department’s pension fund Advisory Council.