FeganScott filed a national class action lawsuit on behalf of individuals who did not timely receive their contractually agreed-upon Thrift Savings Plan (TSP) deposits from their employer, the United States of America, during the partial government shutdown.
The TSP is a defined contribution plan for federal employees, managing more than $500 billion in retirement assets. According to the suit, during the partial government shutdown, the value of TSP shares increased for all funds, and when employees received their backpay at the end of January, they lost the gains they otherwise would have received had their deposits been made as scheduled.
The lawsuit estimates that plaintiffs lost $10-20 million in market gains as a result of the defendant’s breach of contract and asks the court to award damages as a result of the lost gains.
On February 18, 2021, the district court denied Defendant’s motion to dismiss Plaintiffs’ complaint and found that Plaintiffs’ have adequately alleged an entitlement to relief under the TSP. The Government has appealed the District Court’s decision to the Third Circuit Court of Appeals.