Could New Wyeth Layoffs Spell Trouble for Wyeth 401k Members?
Trenton, NJ: A new round of job cuts at Wyeth Pharmaceuticals announced yesterday adds further impetus for current, or former employees of Wyeth holding retirement funds in a Wyeth Savings Plan or Wyeth Union Savings Plan to investigate the possibility of an ERISA breach. A possible violation of the Employee Retirement Income Security Act of 1974 (as amended) is being investigated surrounding the selection and promotion of Wyeth common stock for investment within the Employee 401(k) Plans when it may not have been prudent to do so. Judging from the events of the past year, and this latest round of cuts that will see upwards of 1200 sales reps losing their jobs, it seems apparent that the company has hit a rocky patch. In this environment, it may not have been prudent to invest employee savings plans and 401(k) plans in company stock, if there was any expectation that the company might fall on hard times, resulting in a drop in the stock price, and a reduction of savings and retirement
