Frontier Communications 401(k) plan participant sues over Verizon stock fund [telecom]

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By Rob Kozlowski  

Frontier Communications Corp., Norwalk, Conn., is the target of a
fiduciary lawsuit by a 401(k) plan representative alleging the
telecommunications company violated its fiduciary duty by offering a
Verizon Communications Inc. company stock fund.

The lawsuit, filed on Tuesday in U.S. District Court in New Haven,
Conn., by Mary Reidt on behalf of plan participants, alleges the plan
has lost $100 million since adding Verizon company stock as an
investment option in its 401(k) plan. In July 2010, Frontier "acquired
of certain locations" from Verizon in July 2010, and between then and
Dec. 30, 2011, the plan "received and retained about $150 million in
Verizon stock, representing over 15% of the plan's assets," according
to the filing, In April 2016, following another acquisition from
Verizon, the lawsuit said Frontier added another $200 million in
Verizon stock to the 401(k) plan.

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