Suit Filed Against Musicians' Union Board of Trustees

During Monday’s meeting of American Federation of Musicians Local 257 at their union hall on Music Row, union members seeking answers to questions about the security of their pensions were informed that a class action lawsuit had been filed against the union pension fund’s board of trustees. Lawyers present at the meeting advised the group that questions pertaining to certain aspects of the fund would not be answered due to pending litigation.

Here is a copy of the union members’ suit, filed on July 14, posted in full.

In sum, the suit alleges that following an estimated $810 million loss from the fund in the fiscal years of 2008 and 2009, the trustees invested monies into risky and volatile markets that required high fees.

“[Trustees] chased recovery of lost investment returns by repeatedly gambling on the hope of high investment returns from the highest risk asset classes, in breach of their fiduciary duties under ERISA,” the suit reads. As a result, defendants allegedly “failed to act solely in the interest of the participants and beneficiaries of the Plan for the exclusive purpose of providing them benefits.”

The suit requests compensation for loss and damages, attorneys’ fees, and the removal of four board members.

A request for comment from AFM-EPF regarding the suit was not returned before deadline.

Dave Pomeroy, president of Local 257, told the Scene that the allegations were frivolous. “From what I’ve learned, this lawsuit has no merit whatsoever,” he said.