an equal and opposite reaction
Case Details for "CSX Corporation "
Investigation of The Tax Savings Thrift Plan for Employees of CSX Corporation and Affiliated Companies
Attorneys are investigating the investment activities of Northern Trust Company ("NTC") and Northern Trust Investments, N.A. ("NTI") with respect to engagement in the securities lending program in The Tax Savings Thrift Plan for Employees of CSX Corporation and Affiliated Companies. The lending program may have resulted in severe losses to the participants' retirement savings which are protected under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").
The investigation focuses on allegations that NTC and NTI imprudently invested their cash collateral pools or collective trusts (collectively, the "Collective Funds") in the securities lending program in the Plan in illiquid and leveraged assets, which led to inappropriate losses. The Collective Funds invested on behalf of many ERISA-protected retirement plans are benchmarked to different stock or bond indices such as the Russell 2000 Index, the S&P 500 Index, or the Lehman Brothers Aggregate Bond Index. However, the Collective Funds that the Plan invested in have not been performing comparatively with their benchmarks due to the alleged inappropriate securities lending activities at NTC and NTI.
Posted on:06/10/2009
Company: CSX Corporation
Affected Class: Participants or beneficiaries of the Plan who suffered losses as a result of the practices by NTC, or NTI.
Scope: Nationwide
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