Fidelity Investments

In March 2015, O’Melveny obtained dismissal of a nationwide class action complaint challenging Fidelity’s administration of “float” on distributions from its 401(k) client plans. The district court in the case In re Fidelity Float Litigation (D. Mass.) held that distributions to participants from 401(k) plans were not assets of the plans, under property law principles as well as the trust agreements at issue. The court also accepted O’Melveny’s argument that Fidelity’s fiduciary obligations to the plans concluded with respect to participant distributions when money was removed from the plans and distribution checks issued to participants.