Government Sues Wayne's Encorium Group

Defunct pharma research company, which folded in 2009, sued over 401(k) plan

The U.S. Department of Labor has sued a defunct corporation, formerly based in Wayne, seeking to remove the company from control of its 401 (k) plan.

According to an announcement by the Department, Encorium Group Inc., a pharmaceutical research company formerly known as Covalent Group, went out of business in 2009, but failed at the time to take steps to terminate its 401 (k) plan. The 33 remaining participants in the plan are left with individual assets of $966,752.08.

“The complaint seeks to remove the defendant, Encorium Group Inc., from its position as a fiduciary with respect to the plan and to appoint an independent fiduciary to terminate the plan and distribute the remaining assets,” the announcement said.

The suit was filed in United States District Court for the Eastern District of Pennsylvania.