FORT WORTH, Texas (Legal Newsline) - A RadioShack employee sued the company on Friday over allegations that it breached its financial duties when managing retirement plans.
Jeffrey Snyder is seeking class status for employees who participated in RadioShack's 401(k) plan, which included investments in the company's stock.
The lawsuit alleges the managers of the retirement plan violated the Employee Retirement Income Security Act after RadioShack's stock fell significantly over the last few years and the company continued to offer it as an investment option to employees.
On Dec. 5, 2011, RadioShack's stock stood at $11.44 per share. About a month later, the stock ended the year at $9.29 per share. By March 2013, the stock stood at $3.39 per share.
The lawsuit said even if outside investors bought stock, the managers of the 401(k) still had a duty under the law not to take “excessive risk” with the investments.
Snyder is represented by Roger L. Mandel, of Lackey Hershman, LLP; Gerald D. Wells and Robery J. Gray, of Connolly Wells & Gray, LLP; and Steven L. Rovner, of Rovner, Allen, Rovner, Zimmerman and Nash.
United States District Court for the Northern District of Texas-Forth Worth Division case number 4:14-cv-00978.