A federal judge in U.S. District Court for the Southern Districtof New York has found the investment manager to two retirementplans liable for losses and ordered more than $15 million indamages to participants.

The lawsuit, which was brought by fiduciaries of plans sponsoredby Severstal Wheeling Inc., alleged that investment manager WPNCorp. and its principal, Ronald LaBow, breeched its obligationunder the Employee Retirement Income Security Act to adequatelydiversify plan assets.

That failure resulted in $9.6 million in plan losses toparticipant assets, according to the ruling of Judge Laura TaylorSwain.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.