Boston Company Faces Class Action Suit over Violations of ERISA Plan

Cincinnati, OHThe Boston Scientific Corporation (BSC) is the subject of a class action suit accusing the company of violating its ERISA plan.

span itemprop="image" itemscope itemtype="https://schema.org/ImageObject" style="display:block">Investigators are focused on a number of questionable investments in company stock in the Boston Scientific Corporation's 401(k) Savings Plan. The plaintiffs claim that BSC and other administrators of the savings plan violated the Employee Retirement Income Security Act of 1974 (ERISA) by failing to manage the assets of the plans prudently and loyally.

The suit alleges that the company continued to invest employee funds in company stock despite difficulties and losses that made the plan no longer a prudent investment for participants' retirement savings.

BSC, a developer and manufacturer of medical devices, declined to comment on the case when questioned by prosecuting firm Statman, Harris and Eyrich.

Estimates claim that employees in the US have lost more than $1.5 billion over the past several years due to canceled and mismanaged employee stock options.