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COLLECTED WISDOM™ on Court and Legal Actions Related to Retirement Plans

A directory and index of articles that review what is happening in the courts and legal system.

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Fund Companies Got Sued by Their Own Employees Over Pricey 401k Plans

Abstract: Big fund companies make hundreds of millions of dollars in fees every year from mutual funds and other products they sell to the public, that's the business. But should they be allowed to profit at the expense of their own employees? Several 401k plan lawsuits assert that the answer is no.

Source: Barrons.com, October 2018

Appellate Panel Finds Retirement Assets Acquired in Divorce Not Protected in Bankruptcy

Abstract: A three-judge panel of the United States Bankruptcy Appellate Court for the Eighth Circuit has ruled that 401k plan and IRA assets acquired by a former spouse in a divorce proceeding are not retirement funds that qualify as exempt under federal law.

Source: Ascensus.com, October 2018

Kaleida Health Faces 403b, 401k Plan Fee Lawsuit

Abstract: The complaint specifically calls out the 11 T. Rowe Price target-date funds offered by the plans, saying they are all adviser or retail class funds, as opposed to investor or institutional class funds.

Source: Planadviser.com, October 2018

Putnam 401k Row Sent Back to Trial Court

Abstract: Investors in Putnam Investments LLC's 401k plan will get another chance to show the company profited at the expense of their retirement savings by putting Putnam-affiliated mutual funds in the plan.

Source: Bna.com, October 2018

Fidelity Sued Again for 401k Plan Mismanagement

Abstract: Fidelity Investments Inc. has been sued by participants in its company 401k plan for alleged self-dealing that caused the firm to profit at the expense of its employees saving for retirement. The lawsuit filed against Fidelity is similar to a separate case filed against the firm about five years ago, which was settled for $12 million in 2014.

Source: Investmentnews.com (registration may be required), October 2018

ERISA University Excessive Fee Cases Take Another Hit

Abstract: Excessive fee complaint dismissed because the diverse selection of funds available to plan participants negates any claim that Defendants breached their duties of prudence simply because cheaper funds were available.

Source: Erisa-employeebenefitslitigationblog.com, October 2018

Court Deems Principal Not a Fiduciary in Lawsuit Over GICs

Abstract: The U.S. District Court for the Southern District of Iowa has ruled against plaintiffs in an ERISA lawsuit. The court granted the Principal defendants' motion for summary judgment on all counts in a case questioning guaranteed investment contract arrangements.

Source: Plansponsor.com, October 2018

Judge Dismisses 401k Fiduciary Breach Lawsuit Against Gannett

Abstract: A U.S. District Court judge in Alexandria, Va., dismissed a 401k plan participant lawsuit against Gannett Co. and plan executives alleging they violated their fiduciary duties for holding too much stock in Gannett's former parent company in the 401k plan.

Source: Pionline.com, October 2018

Another 403b Plan Sponsor Beats Back Fee Lawsuit

Abstract: Washington University in St. Louis has won the dismissal of a lawsuit alleging it caused employees participating in the school's 403b plan to pay excessive fees for recordkeeping and investment management. Judge Ronnie L. White dismissed the lawsuit with prejudice, meaning it can't be brought back at the district-court level.

Source: Investmentnews.com (registration may be required), October 2018

Circuit Split Remains Unresolved After ERISA Case Settles

Abstract: The US Supreme Court dismissed -- pursuant to settlement -- an ERISA lawsuit that could have resolved the circuit split over who holds the burden of proof in ERISA breach of fiduciary duty cases. The settlement and dismissal of this case is disappointing for ERISA litigators because the anticipated resolution regarding burden shifting for loss causation will likely not be resolved soon.

Source: Natlawreview.com, September 2018

Federal Court Orders Prison Term After Benefit Plan Theft

Abstract: A Maryland business owner will serve one year and one day of imprisonment and pay more than $350,000 in restitution for violations of the Employee Retirement Income Security Act.

Source: Planadviser.com, September 2018

Excessive Fee Suit Defendants Now Seek Sanctions Against Schlichter

Abstract: Having won their case in court, the targets of a 403b university excessive fee suit are pressing for a federal judge to impose monetary sanctions against the six employee-plaintiffs and the law firm of Schlichter Bogard & Denton LLP that represented them.

Source: Napa-net.org, September 2018

Frontier Communications 401k Plan Participant Sues Over Verizon Stock Fund

Abstract: Frontier Communications Corp. is the target of a fiduciary lawsuit by a 401k plan representative alleging the telecommunications company violated its fiduciary duty by offering a Verizon Communications Inc. company stock fund.

Source: Pionline.com, September 2018

Podcast: Steps to Reduce Risk of Claims Associated With 401K Plans

Abstract: This 12-minute podcast discusses participant directed defined contribution plans and the lawsuits against the fiduciaries and service providers which are responsible for administering them. Also examines the best practices that can achieve favorable results for plan participants and the practices that can avert litigation or enable plan fiduciaries to effectively defend themselves if there is litigation.

Source: Erisapracticecenter.com, September 2018

NYU v. Sacerdote -- Thoughts for Plan Fiduciaries

Abstract: Since 2016, participants have filed 19 lawsuits against universities over the fees charged to the universities' 403b plans. In the first of these cases to reach trial, New York University secured a complete victory when the court found that NYU did not breach its ERISA fiduciary duty of prudence. The court's decision provides some important takeaways for plan sponsors and the retirement committees that act as plan fiduciaries.

Source: Drinkerbiddle.com, September 2018

Fiduciary Best Practices Helped NYU Win ERISA Class Action

Abstract: District Judge Katherine B. Forrest's opinion in Sacerdote highlights the various fiduciary governance practices the NYU fiduciaries followed in making the decisions at issue in the case. This article summarizes the fiduciary practices and explains how they helped the NYU fiduciaries prevail at the trial level.

Source: Barclaydamon.com, September 2018

How to Keep Your 401k Clients Out of Court

Abstract: While 401k lawsuits show no sign of letting up, the man at the forefront of class-action retirement plan litigation foresees a day when this will change. "Ultimately, it may be that 401k cases end because [retirement plan] sponsors change their practices."

Source: Investmentnews.com (registration may be required), September 2018

Court of Appeals Affirms "Paternalistic" Breach of Fiduciary Duties

Abstract: In holding that the former employee failed to state a claim, the court in Meiners v. Wells Fargo & Co. reasoned that the plaintiff failed to plead facts showing the Wells Fargo investment funds were an imprudent choice. Specifically, the court found that the plaintiff's allegations that an allegedly comparable fund performed better was not sufficient, especially given the other fund's differing investment strategy.

Source: Employeebenefitsblog.com, September 2018

Prudent Practices for Assessing Bundled Services in This Era of 401k Plan Fee Litigation

Abstract: Given the prevalence of ERISA fee litigation, 401k plan sponsors are very concerned about identifying and implementing best fee practices to insulate themselves from liability against such claims. Over 50 so-called "fee cases" have been filed to date, with the majority pursued as class actions. Like most fiduciary benefit claims, however, the liability risk can be substantially mitigated through preventive practices.

Source: Bna.com, September 2018

5th Circuit Sides With Whole Foods in Stock Drop Litigation

Abstract: The case ascended on appeal from the U.S. District Court for the Western District of Texas, where it also flatly failed to meet the high hurdles for proving standing established in Fifth-Third Bank vs. Dudenhoeffer.

Source: Planadviser.com, September 2018

No Quick Exit on 401k Class Action Alleging Imprudent Proprietary Fund Offerings

Abstract: A district court recently denied a motion to dismiss a 401k proprietary fund class action, continuing an overwhelming trend of allowing these cases to survive pleading challenges. On the bright side, however, the Eighth Circuit recently affirmed a dismissal of such a case, and the first of these cases to be tried resulted in a defense victory, which is on appeal with the First Circuit.

Source: Erisa-employeebenefitslitigationblog.com, September 2018

403b Sponsors Finding Success Beating Back Lawsuits

Abstract: Beginning in August 2016, law firms took aim at the ERISA 403b market. Many observers expected an even less favorable outcome for 403b sponsors, particularly given their seemingly ad hoc or patchwork plan design and largely unexamined practices of both sponsors and service providers. The early results, however, have been markedly less successful for the 403b plaintiffs.

Source: Investmentnews.com (registration may be required), September 2018

Court Finds All Claims Plausible in T. Rowe Price Self-Dealing Suit

Abstract: The original complaint accuses T. Rowe Price 401k plan trustees of breaching their fiduciary duties under ERISA by either failing to remedy their predecessors' breaches, or, in a few cases of offering expensive retail class versions of proprietary mutual funds, waiting too long to act to shift into lower cost versions of the funds.

Source: Plansponsor.com, August 2018

Second Lawsuit Over Duke University 403b Plan Filed

Abstract: The new lawsuit alleges the university engaged in prohibited transactions when it used revenue sharing from plan investments to pay for HR staff salaries and fringe benefits.

Source: Planadviser.com, August 2018

Federal Judge Sends Scottrade Case Back

Abstract: Scottrade's attempt to make a federal case of an administrative proceeding filed by Massachusetts alleging violations of internal policies adopted in anticipation of the Labor Department's fiduciary rule has been rebuffed by a federal judge.

Source: Napa-net.org, August 2018

Duty of Loyalty in Stock Drop Cases

Abstract: The United States District Court for the District of Minnesota has, for a second time, dismissed claims by participants in the Wells Fargo 401k plan. This second decision focused on the issue of the fiduciary duty of loyalty, the court's discussion of which is thorough and interesting both in its specific application to stock drop cases and to fiduciary litigation more generally. In this article we discuss the court's opinion in detail.

Source: Octoberthree.com, August 2018

The ERISA Industry Committee Files Lawsuit Against City of Seattle

Abstract: The ERISA Industry Committee filed a complaint in the U.S. District Court for the Western District of Washington against the City of Seattle for obstructing the federal law that enables large employers to administer health and retirement benefits uniformly across the country.

Source: Eric.org, August 2018

SPD vs. Plan Document? Plan Wins, Unless...

Abstract: It is not uncommon for conflicts to exist between the provisions of a plan document and the plan's summary plan description. In a recent case, the provisions of a conflicting SPD may prevail. The case was sent back to the lower court because the error in the SPD was so significant that it could be found to be constructive fraud.

Source: Captrustadvisors.com, August 2018

8th Circuit Sets High Bar for Labeling Retirement Plan Investments "Imprudent"

Abstract: In Meiners v. Wells Fargo & Company, the U.S. Court of Appeals for the Eighth Circuit clarified the burden plaintiffs must meet to state a claim for breach of fiduciary duty under ERISA based on the inclusion of allegedly underperforming and expensive investment funds. Because plaintiffs often lack detailed information about the process plan fiduciaries followed to make investment choices, pleading a plausible claim that those fiduciaries have acted imprudently can pose a significant challenge.

Source: Kslaw.com, August 2018

The Recent NYU ERISA Decision and Best Practices for ERISA Fiduciaries

Abstract: The decision in favor of NYU, and the recent dismissal of two other similar lawsuits against Northwestern University and the University of Pennsylvania, should give some comfort to fiduciaries of ERISA retirement plans, especially those sponsored by higher education institutions. The NYU decision suggests that 403b plans do not necessarily violate ERISA simply because they have a very large number of investment funds, including actively managed funds, or because they do not promptly remove underperforming funds from the plan.

Source: Bsk.com, August 2018

What Makes a 401k Plan Sponsor a "Mark" for Litigation

Abstract: Certain 401k plan sponsors can be targets for litigation because they're showing something glaring that shows that they are not exercising their fiduciary duty in a prudent manner. To avoid being a "mark" for 401k litigation, the plan sponsor should avoid the items noted in this article.

Source: Jdsupra.com, August 2018

Fiduciary Litigation: Best Practices for DC Plan Fiduciaries

Abstract: When employees allege the employer or plan sponsor has not acted in the sole interest of the participants or followed the plan requirements, the plan sponsor may be liable for losses and damages which result. However, by following the best practices for defined contribution plan fiduciaries, plan sponsors can avoid litigation and limit potential losses.

Source: Bsllp.com, August 2018

Court Orders Business Owner to Prison for Embezzling 401k Funds

Abstract: The court-ordered restitution includes $69,000 in employee and matching employer contributions, as well as lost earnings due to the 401k plan, and approximately $4.3 million for fraudulent loans and identity theft.

Source: Planadviser.com, August 2018

Appeals Court Upholds Dismissal of Wells Fargo 401k Lawsuit

Abstract: A federal appeals court in St. Louis upheld a U.S. District Court judge's dismissal of an ERISA breach claim against Wells Fargo & Co. by a participant in the company's 401k plan, who alleged fiduciaries could have offered a better-performing nonproprietary investment choice.

Source: Investmentnews.com (registration may be required), August 2018

Citigroup Reaches $6.9 Million Settlement in 401k Lawsuit

Abstract: Citigroup has reached a $6.9 million settlement with plaintiffs in a more than decade old lawsuit alleging the financial services firm stuffed its retirement plan with expensive in-house investments, thereby enriching the company at the expense of its employees.

Source: Investmentnews.com (registration may be required), August 2018

Statute of Limitations Bars Claim That High Fees Made Plan's Investments Imprudent

Abstract: This case highlights the importance of "actual knowledge" under ERISA's statute of limitations for fiduciary violations. Not only does actual knowledge shorten the limitation period from six to three years, but it may also effectively prevent the use of a continuing violation theory of liability.

Source: Thomsonreuters.com, August 2018

Court Finds in Favor of NYU in 403b Plans Lawsuit

Abstract: A federal district court judge found that "while there were deficiencies in the Committee's processes -- including that several members displayed a concerning lack of knowledge relevant to the Committee's mandate -- ;plaintiffs have not proven that the Committee acted imprudently or that the Plans suffered losses as a result."

Source: Planadviser.com, August 2018

Benefit Plan Sponsors Must Be Given Deference in Plan Interpretation

Abstract: A recent federal appeals court decision has vacated the lower court's decision and remanded the case back to the court. The decision found the district court had used the wrong standard of review and the ambiguous terms of the plan should have been reviewed using the deferential arbitrary and capricious standard.

Source: Bsllp.com, July 2018

General Cable Snaps Plaintiffs' ERISA Stock Drop Claims

Abstract: In this case, the alleged knowledge of an artificially high stock price was rooted in the fact that the company had not disclosed that employees of its foreign subsidiaries had violated the Foreign Corrupt Practices Act of 1997 by paying bribes to foreign government officials.

Source: Planadviser.com, July 2018

Ninth Circuit Holds Collective Claims Made on Behalf of ERISA Plans Survive Motion to Compel Arbitration

Abstract: The U.S. Court of Appeals for the Ninth Circuit held that collective claims for alleged breaches of fiduciary duty under ERISA were not subject to the arbitration agreements in plaintiff employees’ employment contracts. Instead, since those claims were brought for the benefit of the ERISA plans in which the plaintiffs participated, they were outside the scope of the employees’ individual arbitration agreements and could be litigated in court on a collective basis.

Source: Classactioncountermeasures.com, July 2018

Ninth Circuit Rejects Bid to Arbitrate ERISA Plans' Claims

Abstract: The Ninth Circuit held that employees' agreements to arbitrate all claims the employees may have did not extend to claims brought on behalf of two ERISA plans under ERISA Section 502(a)(2). In so ruling, the Court explained that the employees could not agree to arbitrate claims on behalf of the plans in individual employment contracts because those employees cannot waive the plans' rights.

Source: Erisapracticecenter.com, July 2018

Brown University Only Partially Successful in 403b Lawsuit

Abstract: A federal judge in Rhode Island recently permitted several claims against Brown University to proceed in a lawsuit alleging that the university and its fiduciaries breached their fiduciary duties under ERISA by mismanaging Brown's defined contribution plans. This decision follows the recent decision in a similar class action lawsuit against Northwestern University in which a federal judge granted Northwestern a complete victory in its motion to dismiss.

Source: Employeebenefitsblog.com, July 2018

Internal Statutes of Limitation Under ERISA

Abstract: Considering the heightened frequency of 401k plan litigation, it is appropriate for plan fiduciaries to include favorable procedural rules as part of their claims procedures. One such rule is an internal statute of limitations, which the Supreme Court has held is permissible in an ERISA plan so long as it is reasonable and there is no controlling statute to the contrary. As a best practice, notice of any internal statute of limitations should be provided.

Source: Wagnerlawgroup.com, July 2018

ERISA Litigation Surging -- Focus on Fees

Abstract: After a few years of decline, litigation involving 401k plans "has surged again recently," according to a study published by the Center for Retirement Research at Boston College. This is likely not news to 401k sponsors and service providers, who are confronted with this reality on a near daily basis. The authors of the study point to some consequences -- good, bad, and mixed -- of the 401k litigation trends they've identified.

Source: Insidecompensation.com, July 2018

Checksmart Wins Dismissal of 401k Excessive Fee Lawsuit

Abstract: Checksmart Financial LLC defeated a lawsuit accusing it of violating federal benefits law by offering high-fee, poorly performing investment funds in its $25 million 401k plan.

Source: Bna.com, July 2018

Judge dismisses Stock-Drop Suit Against Allergan

Abstract: A federal judge has dismissed a complaint by participants in an Allergan defined-contribution plan, rejecting allegations that company and plan executives violated their fiduciary duties by offering company stock in the plan menu.

Source: Investmentnews.com (registration may be required), July 2018

Is This the Most Absurd 401k Fraud Case Yet?

Abstract: According to a Matrix Trust representative, "Matrix Trust Company did not manage these investment accounts or serve as a trustee or fiduciary for them. This lawsuit involves accounts that were opened and managed by Vantage Benefits Administrators. Matrix's actions were consistent with its custodial agreements and intends to vigorously defend itself against these baseless claims."

Source: 401kspecialistmag.com, July 2018

Recordkeeper Defeats Second Round of Robo-Adviser Fee Litigation

Abstract: The court rejected the argument that constraining the plan's service provider choices amounted to de facto control since the plan had other alternatives to choose from (such as not using an investment adviser or changing recordkeepers) and dismissed the claim without leave to amend, ending the case at the district court.

Source: Erisapracticecenter.com, July 2018

Matrix Trust Company Accused of Making Unauthorized Transfers of 403b Plan Assets

Abstract: Plan participants have filed a lawsuit against Matrix Trust Company for making several transfers to an unauthorized account held by recordkeeper Vantage Benefits Administrators.

Source: Planadviser.com, July 2018

GWU Tells Court 403bs Cannot Be Compared to 401ks

Abstract: In a brief supporting a motion to dismiss a case against George Washington University related to the management of its 403b plan, the defendants note that 403bs have always looked differently and were set up for a different purpose than 401k plans.

Source: Plansponsor.com, June 2018

QDIA Lawsuits: A New Fiduciary Risk for 401k Plan Sponsors

Abstract: Here's a new risk for plan sponsors to be aware of, you could be sued based on the qualified default investment alternative (QDIA) you choose for your retirement plan. For example, participants could claim you failed to fulfill your fiduciary duty if the plan's qualified default investment option -- typically a target-date fund -- doesn't deliver the expected outcomes.

Source: 401ktv.com, June 2018

Northwestern University Defeats 403b Lawsuit

Abstract: A federal judge in the Northern District of Illinois recently dismissed a lawsuit against Northwestern University alleging that the University and its fiduciaries mismanaged its retirement and voluntary savings plans. This is the latest decision in a series of class action lawsuits against prominent universities in which plaintiffs allege fiduciary violations of ERISA.

Source: Employeebenefitsblog.com, June 2018

401k Excessive Fee Suit Alleges Issues with ETFs, TDFs, and Menu Size

Abstract: Another provider has been sued by an employee-participant in its own 401k plan, not just for its inclusion of proprietary funds, but the type and number of options on its menu and its target-date strategy.

Source: Asppa.org, June 2018

Vanderbilt University Faces New Claim Over Product Marketing to 403b Participants

Abstract: The new claim in the 403b plan lawsuit says the defendants should have protected participant data as plan assets and not allowed TIAA to use it to market its products and services to participants.

Source: Planadviser.com, June 2018

Deutsche Scales Back Workers' Claims Ahead of 401k Fee Trial

Abstract: The workers can move forward with their claims of fiduciary breach based on the offering of in-house funds that carried excessive fees and performed poorly, as well as Deutsche's alleged failure to monitor high fees and fiduciaries, Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York held June 6. The workers, however, can't proceed with their claims that Deutsche engaged in prohibited transactions under ERISA by offering proprietary mutual funds in the plan.

Source: Bna.com (registration may be required), June 2018

Plaintiffs Press for Fiduciary Rule 'Closure'

Abstract: The victorious plaintiffs in litigation vacating the Labor Department's fiduciary rule would like the U.S. Court of Appeals for the 5th Circuit to put the rule -- and the financial services industry at large -- out of its collective "misery."

Source: Asppa.org, June 2018

Invesco Sued for 'Indiscriminately' Loading 401k Plan With In-house Funds

Abstract: Invesco has been sued for allegedly stacking its 401k plan with proprietary investments, joining the ranks of more than 20 asset managers who have had to defend against similar claims of mismanagement by employees seeking to claw back lost retirement savings.

Source: Investmentnews.com (registration may be required), June 2018

Bank of America Wins 401k Asset Transfer Appeal

Abstract: Bank of America Corp. defeated an appeal challenging a 20-year-old, $3 billion transfer from the company's 401k plan to its pension plan. A federal district court didn't err in using the bank's approach to determine whether it profited from the transfers and then conclude that since it didn't, the workers weren't entitled to any monetary recovery.

Source: Bna.com (registration may be required), June 2018

Edison Executives Beat Latest Challenge to Stock Losses in 401k

Abstract: Two Edison International top executives defeated again a worker's lawsuit challenging their decision to retain allegedly inflated Edison stock in the company's 401k plan.

Source: Bna.com (registration may be required), June 2018

Fiduciary Litigation Update

Abstract: The following topics are covered in this presentation slide deck: 401k and 403b fee litigation, fiduciary risk on alternative investments. proof of causation on breach and damages, and ESOP trials and valuation issues.

Source: Americanbar.org, May 2018

Northwestern University Beats Jerry Schlichter 403b Lawsuit

Abstract: Northwestern University has become the second college to beat back allegations of retirement-plan mismanagement, prevailing in a lawsuit brought by prominent plaintiffs' attorney Jerry Schlichter.

Source: Investmentnews.com (registration may be required), May 2018

Northwestern University 403b Lawsuit Tossed By District Court

Abstract: Defendants strongly prevailed with their motion to dismiss, and the Illinois District Court barred further motions as moot: The complaint was far too general in its scope and allegations to move ahead.

Source: Planadviser.com, May 2018

Court Orders Independent Plan Fiduciary for Cambridge Technology Group

Abstract: The U.S. District Court for the Eastern District of Virginia has ordered the appointment of an independent fiduciary to distribute $535,790 in assets to 24 participants of the Cambridge Technology Group Inc. 401k Plan.

Source: Plansponsor.com, May 2018

University of Chicago Settles 403b Lawsuit for $6.5 Million

Abstract: The University of Chicago has agreed to settle a retirement-plan lawsuit for $6.5 million, becoming the first of about 20 prominent universities facing allegations over 403b-plan mismanagement to take such a step. Observers say it's difficult to determine if this is a harbinger of the outcome in the roughly 20 outstanding lawsuits.

Source: Investmentnews.com (registration may be required), May 2018

Court Dismisses Claims Regarding Investments in Former Parent Company's Stock

Abstract: A federal district court has dismissed all claims against the fiduciaries of a DC plan over their retention of investments in the stock of the plan sponsor's former parent company. Together, this case and Tatum show how spun-off employers may risk litigation whether they keep investments in their former parent company's stock or force a divestiture. But the outcome here also illustrates how plan fiduciaries who take the frozen fund approach used here can benefit from Dudenhoefer.

Source: Thomsonreuters.com, May 2018

Settlement Preliminarily Approved in University of Chicago Excessive Fee Suit

Abstract: Without admitting any wrongdoing, the University of Chicago has agreed to a $6,500,000 settlement of an ERISA excessive fee case. According to the settlement agreement, the university has already made changes to the investment lineup for its 403b plans.

Source: Planadviser.com, May 2018

University of Rochester Called Out for Excessive Fees Paid to TIAA

Abstract: A participant in the University of Rochester Retirement Program has filed a lawsuit alleging that plan participants have paid an estimated $72 million in in recordkeeping, distribution, and mortality risk fees to provider TIAA.

Source: Planadviser.com, May 2018

Plan Sponsor Challenged in a Lawsuit for Using Untested Hewitt Funds

Abstract: The plaintiffs say that since these experimental funds were added to the plan in 2013, they have consistently underperformed their benchmarks, and have underperformed the funds they replaced by tens of millions of dollars.

Source: Planadviser.com, May 2018

States Ask 5th Circuit to Reconsider Fiduciary Ruling

Abstract: In a filing on May 16, the states explain that since the federal government "is no longer pursuing this appeal... the exceptional importance of the issues, and the grave harm the States will suffer as a result of the panel opinion -- billions of dollars in lost retirement income to their residents and tens of millions of dollars in lost tax revenue -- the States respectfully request that the Court reconsider its decision."

Source: Ntsa-net.org, May 2018

Is Excessive Fee Litigation Headed for Its Dudenhoeffer?

Abstract: Groom Law Group litigation principal Mark Bieter analyzes recent trends and outcomes in class actions challenging fees and services in large corporate 401k plans.

Source: Groom.com, May 2018

Stable Value Snub Draws Excessive Fee Suit

Abstract: The law firm of Schlichter, Bogard & Denton has targeted another 401k plan for breach of its fiduciary duties and their claims include that the lack of a stable value fund cost plan participants $41 million.

Source: Asppa.org, May 2018

Aon Hewitt, Lowe's 401k Plan Latest Target of ERISA Lawsuit

Abstract: Aon Hewitt Investment Consulting and Lowe's are being sued by the participants of the Lowe's 401k retirement plan; the proposed class of plaintiffs puts forward a variety of familiar ERISA fiduciary breach claims.

Source: Planadviser.com, May 2018

Third Parties Weigh in on 403b Litigation

Abstract: Three briefs were filed with the US Court of Appeals for the Third Circuit in support of the University of Pennsylvania and its Investment Committee. The briefs support the assumption that 403b plans have traditionally been managed differently than 401k plans, and as a result, they cannot be viewed in the same light with respect to litigation.

Source: Sentinelgroup.com, May 2018

401k Lawsuits: What Are the Causes and Consequences?

Abstract: This 24-page paper looks at the broad complaints that motivate the litigation and how the threat of litigation may affect the retirement industry. The first section introduces the three main reasons why litigation is brought in the first place. The second section turns to the potential effects of this litigation on 401k plans.

Source: Bc.edu, May 2018


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