DST Systems, Inc., - Valeant Litigation

DST Systems, Inc., which was one of Kansas City’s largest employers until it was acquired by SS&C, offered its workers a retirement plan with two parts: one was a traditional 401(k) and the other was a profit-sharing plan, over which employees and retirees had no say. At one point, DST’s profit-sharing plan sunk as much as 45% of its funds into Valeant International Pharmaceuticals, Inc. (“Valeant”), a speculative pharmaceutical company. In 2015, Valeant lost 90% of its value. For DST employees and retirees, the losses added up to nearly $400 million.

Following the Valeant debacle, DST found itself defending multiple class actions for breach of ERISA. Invoking the arbitration clause and class action waiver contained in its employee handbook—and in the Plan itself—DST successfully compelled arbitration and won a final judgment from the U.S. District Court of the Western District of Missouri declaring the arbitration clause valid and enforceable, and further holding that claims for breach of fiduciary duty under ERISA fall within its scope. Thereafter, DST sent a notice to all Plan participants advising them that they “may initiate an individual arbitration proceeding” under the terms of its arbitration agreements.

Hundreds of arbitrations have since been commenced and tried by our firm, along with Humphrey, Farrington & McClain; Kapke & Willerth; and White Graham Buckley & Carr. As of today, participants have been awarded a combined total of more than $40 million in final arbitration awards, more than 175 of which have been confirmed by the U.S. District Court of the Western District of Missouri.

We continue pursuing claims on behalf of plan participants and invite those who may wish to pursue their own claim to reach out to us or to any of the firms listed above.