MeadWestvaco Corp. Former Employee Investigation Over Possible ERISA Breaches
An investigation on behalf of former and current employees of MeadWestvaco Corp. (NYSE:MWV), who are or were participants or beneficiaries of the MeadWestvaco employee pension plan, over possible violations of the Employee Retirement Income Security Act (“ERISA”), a law that regulates private sector pension plans in the United States, was announced.
According to the investigation a recent US Supreme Court ruling calls into question MeadWestvaco Corporation’s actions in converting its pension plan to a cash-balance plan, which falls under ERISA.
The investigation by a law firm focuses on potential claims against global packaging company MeadWestvaco Corporation (NYSE: MWV) after MeadWestvaco allegedly made substantive changes to its employee pension plan, actions which may violate federal law.
According to the investigation under ERISA employees (former and current) of MeadWestvaco Corp. (Public, NYSE:MWV may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them.
MeadWestvaco’s 12months Total Revenue fell from $6.4billion in 2007 to $5.963billion in 2010. Its Net Income fell over the same time frame from $285million in 07 to $196million in 2010.
Shares of MeadWestvaco Corp. (Public, NYSE:MWV) increased from as low as $7.85 per share in March 09 to $33.52 on May 27, 2011. Over the past weeks MWV shares fell and traded recently at $30.96 per share.