Spano v. The Boeing Company

Dist. Ct. erred in certifying two class actions alleging that defendants violated certain provisions of ERISA where, according to plaintiffs (beneficiaries of company 401(k) plans), defendants breached certain fiduciary duties owed to them by causing plans to pay excessive fees and expenses, including imprudent investment options in plans and concealing material information regarding plan fees and expenses. While instant causes of action have potential for class action treatment, and plaintiffs otherwise met commonality requirement of Rule 23(a)(2), plaintiffs failed to establish typicality requirement where many class members never held stock in particular stock funds at issue in complaint. Moreover, plaintiffs failed to demonstrate adequacy of representation requirement where scope of class members was too broad in that relief sought by named plaintiffs could have harmed other class members. However, on remand Dist. Ct. will be given opportunity to narrow scope of class.