A lawsuit against MGM Resorts in connection with charges for mismanagement of employees’ retirement fund has been authorized as a class action by a Nevada federal court.
Retirement Fund Mismanagement Lawsuit Against MGM Resorts Turns into a Class Action
Play USA reported that on October 19, Judge Jennifer Dorsey certified the lawsuit filed by Eboni Lucas and other plaintiffs as a class action.
The lawsuit has been going on for more than two years and may finally move toward a resolution after the judge’s decision to make it into a class action.
The case includes all MGM Resorts employees who have opted in for the company’s 401(k) Savings Plan since 2014. However, exempt from the class action are board of directors members, MGM Internal Compensation Committee members, Administrative Committee members, and any employees that decide to not take part in the class action.
The case was filed by Eboni Lucas and a few other plaintiffs back on December 4, 2020. They accuse MGM Resorts of breaching the Employee Retirement Income Security Act of 1974 by not properly managing the employees’ investments in the retirement fund offered by the company resulting in a loss of value.
More precisely the main charge included in the lawsuit is presented as follows: “Failing to objectively and adequately review the Plan’s investment portfolio with due care to ensure that each investment option was prudent, in terms of cost; and maintaining certain funds in the Plan despite the availability of identical or similar investment options with lower costs and/or better performance histories.”
The plaintiffs further highlight that due to MGM Resorts’ neglect of its duties, the employees who had opted for the retirement plan lost millions of dollars.
MGM Resorts disputed the claims by noting that bringing in smaller returns is not a legitimate reason to press charges for violation of fiduciary duty.
Another Class Action Lawsuit Against MGM Resorts Was Filed in Mississippi
MGM Resorts is the object of another class action lawsuit in Mississippi which was filed by plaintiff Leane Scherer.
She accuses the company of robbing its customers of small change on thousands of cash-out transactions, which results in major profits for the company.
When a player wants to cash out his winnings from a slot machine, MGM Resorts rounds the payout to the nearest dollar, which means that if the player has $100.50 to cash out the casino cage will only pay out $100, effectively depriving the customer of his change.
The charges against MGM Resorts include unfair enrichment and violation of contract and may result in serious financial liabilities.
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