Allianz Will Pay $12M to Settle Erisa Class Action Lawsuit

Bradley/Grombacher, LLP • January 30, 2018

Allianz Asset Management has agreed to pay $12 million to settle a 2015 lawsuit that alleged the company violated the Employee Retirement Income Security Act.

According to the lawsuit, Allianz violated the law protecting workers’ retirement funds by engaging in self-dealing. The plaintiffs said that Allianz used 401(k) assets for their own financial benefit.

Now, Allianz will pay $12 million into a benefit fund for plan participants as part of the ERISA settlement. The $12 million will be allocated to members based on their account balances during the time of the alleged ERISA violations.

The ERISA settlement also requires the asset management company to make administrative changes and an independent monitor be appointed to review investment lineups on a yearly basis.

“During the course of the litigation,” notes the ERISA settlement motion.” “The settling parties engaged in substantial discovery. This included production of over 160,000 pages of documents by defendants; production of additional documents by the class representatives; production of documents by non-parties; seven depositions of defense fact witnesses; depositions of each of the named plaintiffs; and one third-party fact witness deposition. In addition, the settling parties also exchanged reports from their respective experts, including three reports from plaintiffs’ experts (Ian Ayres, Ph.D., Steve Pomerantz, Ph.D., and Marcia Wagner, Esq.) and four reports from defendants’ experts (Randolph Bucklin, Ph.D., Russell Wermers, Ph.D., Raymond Kanner, and Kristen Willard, Ph.D.). All seven experts were deposed by counsel for the settling parties.”

Plan participants hit Allianz with a lawsuit alleging ERISA violations after discovering that the total plan cost for their 401(k) was 0.77 percent.

The lawsuit alleged the cost was “outrageously high for a defined contribution plan with over $500 million in assets.”

The ERISA lawsuit accused Allianz and other plan administrators of “[treating] the plan as an opportunity to promote the Allianz Family’s mutual fund business and maximize profits at the expense of the Plan and its participants.”

According to the lawsuit, Allianz violated ERISA by costing plan participants millions of dollars in excess fees every year. Fees were 75 percent higher than the average retirement plan in the same class, alleged the plaintiffs, costing plan participants $2.5 million in excess fees in a single year, 2013.

ERISA Protections

The Employee Retirement Income Security Act of 1974 (ERISA) provides protection for certain types of retirement and pension plans as well as for disability insurance, life insurance and health plans. Under the law, companies that administer these plans need to meet certain requirements, called fiduciary duties. These duties include providing plan participants sufficient information about the plan, setting standards for participation, vesting and accrual, oversight and accountability, and meeting standards of conduct.

ERISA also provides plan participants the right to file a lawsuit against plan administrators if they breach their fiduciary duties.

The Allianz ERISA Lawsuit is Urakhchin, et al. v. Allianz Asset Management of America, L.P., et al., Case No. 8:15-cv-01614-JLS-JCG, in the U.S. District Court for the Central District of California.

If you are concerned about the management of your retirement or pension plan, contact an experienced ERISA attorney at Bradley/Grombacher today.

Note: Bradley/Grombacher is not representing the plaintiff in this lawsuit. 

June 5, 2025
At Scanes Yelverton Talbert, LLP, we believe that if you are questioning whether you have a case against your current or former employer, your first step should be to seek legal guidance. The best way to get started is by visiting our website for more information and filling out our online form to connect with our attorneys. Many of these potential claims fall under the Americans with Disabilities Act (ADA), which encompasses three distinct types of claims: disability discrimination, failure to accommodate a disability, and retaliation—where an employer takes adverse action against an employee for complaining about discrimination or requesting accommodations. Many of our cases involve ADA claims, which often intersect with claims under the Family and Medical Leave Act (FMLA). While both address medical-related workplace issues, they serve different purposes. The FMLA applies when an employee needs to take time off work due to a medical condition. In contrast, ADA claims generally arise when an employee can continue working but requires a reasonable accommodation. Another common claim we handle is workers' compensation retaliation. This occurs when an employee is injured on the job, files a workers' compensation claim, and then faces retaliation from their employer—an illegal action. These are just a few examples of the cases we deal with daily. We also frequently handle cases under Title VII of the Civil Rights Act, which protects employees from discrimination based on race, religion, sex, national origin, and color. If an employee experiences discrimination on any of these grounds, they may have a valid claim. Additionally, a retaliation claim may also be pursued if an employer retaliates against an employee for taking protected action—such as reporting discrimination to their employer or the Equal Employment Opportunity Commission (EEOC). At Scanes Yelverton Talbert, LLP, we are dedicated to defending those facing unjust treatment at work. Understanding your rights is the first step toward justice, whether you're facing discrimination, retaliation, or an employer unwilling to provide reasonable accommodations. We encourage you to visit our website for more information and to fill out our online form to connect with our attorneys. Our team is here to help you explore your legal options and determine the best path forward.
May 13, 2025
At Scanes Yelverton Talbert, LLP, our practice is firmly established in Central Texas, concentrating on the area known as the "iron triangle," which includes Dallas, Houston, and Austin. We are dedicated Texas attorneys who aim to help clients understand the laws of our state regarding personal injury cases. Our team is here to guide you and ensure you are well-informed. Take note of Texas's mandatory minimum car insurance requirement. Every driver must carry at least $25,000 in property damage coverage and $30,000 in bodily injury coverage as part of their car insurance policy. Many insurance policies offer additional coverage beyond these limits, which can be crucial in an accident. Many individuals are unaware that their insurance policies may provide additional coverage for personal injury claims. For instance, Personal Injury Protection (PIP) and Medical Payments (Med Pay) coverage are both no-fault insurances. You are not required to prove the other driver was at fault to receive benefits. These options can provide immediate financial assistance, allowing you to submit medical bills directly to your insurance company for reimbursement. Underinsured and uninsured motorist protection is another essential type of first-party insurance coverage. This coverage can help cover your medical costs if you are hurt in an accident brought on by a driver who does not have enough insurance. For example, if the at-fault driver only carries the minimum coverage and your medical bills exceed $30,000, uninsured or underinsured motorist protection may provide additional compensation for your losses, including pain and suffering. Understanding the effects of Texas tort reform laws—especially those passed since 2003 that restrict recoverable damages—is also crucial. Let's say, for instance, that a government vehicle hurts you. If so, the maximum amount you can get back is determined by whether the car is a state or city vehicle, with the maximum being $100,000 and $250,000, respectively. Furthermore, notification requirements for claims against government agencies are sometimes stringent. They can be as short as one month after the incident. You should seek legal counsel immediately if a government employee has harmed you while performing their duties. Furthermore, changes in Texas law since 2010 have altered how medical expenses are recovered in personal injury cases. In the past, even if an insurance company negotiated a reduced payment, plaintiffs could still get the full amount that medical providers had invoiced. However, recovery is only allowed up to the actual amount paid under the laws. Navigating these complications requires knowledgeable legal counsel to guarantee you get the most money possible under the law. At Scanes Yelverton Talbert, LLP, our mission is to guide clients through the complexities of personal injury law in Texas. If you or a loved one has been injured, we encourage you to visit our website to explore your legal options and connect with our team for further assistance.
May 13, 2025
At Scanes Yelverton Talbert, LLP, we believe that if you are questioning whether you have a case against an insurance company or wondering what constitutes a fair settlement, your first step should be to seek legal guidance. The best way to get started is by visiting our website for more information and filling out our online form to connect with our attorneys. As plaintiff attorneys, we evaluate three key factors to determine whether a case is legally viable. First, do you have liability facts? In other words, did someone legally do something wrong to you? Not every unfortunate event is grounds for a lawsuit. Imagine a Venn diagram: one circle represents all bad events, and the other represents legally actionable claims. The overlap is much smaller, but we move to the next step if your situation falls within that space. Second, do you have sufficient damages? Is it worth your time to file a lawsuit and go through the legal process? At Scanes Yelverton Talbert, we generally advise that if your injury requires hospital treatment, a visit to your primary care physician, or chiropractic care, you likely have enough damages to justify pursuing a claim. Lastly, if you win, can you recover compensation? In personal injury cases, this typically means insurance companies, whether auto insurance, homeowner’s insurance, or business liability coverage. In employment cases, it could be employment insurance or a corporation paying for wrongful termination. The key question is whether there is a viable source of compensation if legal action is necessary. Our goal at Scanes Yelverton Talbert, LLP, is to help you evaluate your claim and understand your legal options. If you are uncertain about your situation, we encourage you to visit our website, fill out our online form, and let our team provide the guidance and assistance needed to determine your best course of action.
May 13, 2025
At Scanes Yelverton Talbert, LLP, we are dedicated to helping people. We are committed to supporting our clients at every stage because we recognize how difficult it may be to navigate legal issues. We are here to ensure every client has a strong advocate because we believe everyone deserves to be heard. Attorneys Bo Routh and Mike Scanes established our practice in 2005. They used to work for a more prominent local general practice law firm. Their goal was to establish a practice that provided excellent legal counsel to those in need and was committed to client advocacy. Today, Mike Scanes remains a senior partner and founding member, while Bo Routh departed at the end of 2021. Following his departure, Tyler Talbert and Ben Yelverton became named partners, officially becoming Scanes Yelverton Talbert, LLP. Tyler Talbert specializes in appellate advocacy, representing clients in Texas and federal appellate courts. He has experience in civil appeals, litigation, and trial support, including motions, error preservation, and jury charges. Ben Yelverton is also an expert in business litigation and personal injuries. He handles matters ranging from class actions to wrongful deaths throughout his early courtroom experience in Austin and Dallas. He is a strategic litigator committed to helping clients get the best results. Another vital member of our law firm is Joel Shields, who has contributed significantly to the expansion and prosperity of the company since joining in 2007. He is Board-Certified in Labor and Employment Law by the Texas Board of Legal Specialization. Joel is an aggressive advocate for his clients and offers wise counsel, whether pursuing claims for someone wrongly fired or advising a company on how to comply with legal requirements. At Scanes Yelverton Talbert, LLP, our passion lies in advocating for individuals. We often represent people in legal battles against large insurance companies or corporations rather than defending corporate entities. Many of our clients come to us in times of need –whether they have been injured in a car accident and are struggling to get their insurance companies to pay or are homeowners whose fire damage claims have been unfairly denied. We also handle employment law cases, ensuring that employees who have been wrongfully terminated or treated unjustly in the workplace receive the representation they deserve. At Scanes Yelverton Talbert, LLP, we advocate for those in need. Whether taking on powerful corporations, advocating for justice, or protecting individuals from unfair treatment, we are here to make a meaningful difference in our clients' lives.
By Kiley L. Grombacher June 21, 2023
Bradley/Grombacher LLP
Abercrombie Clothing Lawsuit Leads to $25 Million Dollar Settlement
By Bradley/Grombacher, LLP May 16, 2023
An Abercrombie clothing lawsuit has led to a $25 million settlement over allegations that employees were required to purchase the clothing they were selling in the store.
Join Us For The 2022 Class Action Litigation Conference!
By Marcus J. Bradley September 14, 2022
The program will feature an update of Pending Cases in the 9th Circuit with some SCOTUS discussion, and several important technical issues required for bringing and defending class actions.
By Bradley/Grombacher, LLP June 22, 2022
Marcus Bradley is a founder and partner at Bradley/Grombacher, LLP, and focuses much of his practice on complex consumer litigation, class actions, mass torts, product liability, personal injury, and more.
By Bradley/Grombacher, LLP June 21, 2022
Kiley Grombacher is a founder and partner at Bradley/Grombacher, LLP, and focuses much of her practice in complex litigation including consumer and employment class actions, product liability, and pharmaceutical mass torts.
By Bradley/Grombacher, LLP May 12, 2022
The Harris Martin's MDL Conference is focusing on recalled infant formula and Gardasil.
More Posts