Wolf Popper LLP in New York said Friday that it has sued on behalf of participants in the Aon Corp. 401(k) plan, alleging violations of the federal pension law in connection with Aon stock's recent loss of value.
Fiduciaries of the Aon 401(k) plan violated their fiduciary duties by investing plan assets in Aon stock from Nov. 1, 1998, to the present, the lawsuit alleges, during which period Aon failed to disclose certain improper practices.
In particular, the suit said, Aon touted itself as experiencing outstanding, sustainable growth and as continuing to show positive results when, in truth, it was engaged in a plan whereby Aon steered business toward certain insurers and shielded such companies from competition in exchange for contingent commissions. The company's stock price plunged 26% in the two weeks after disclosure of those practices last month.
A class action alleging similar facts for Oct. 31, 2002, to the present was announced last Tuesday.
