An ERISA action alleging breaches of fiduciary duty recently cleared the pleadings stage in Minnesota district court, narrowly avoiding a complete dismissal. See Schave v. CentraCare Health Sys., No. 22-cv-1555 (WMW/LIB), 2023 U.S. Dist. LEXIS 13786 (D. Minn. Jan. 27,
ERISA Litigation Advisor
News and Insights on the latest ERISA litigation trends for employers
The ERISA Litigation Advisor blog, published by Jackson Lewis P.C., focuses on legal developments and litigation trends related to the Employee Retirement Income Security Act (ERISA). It covers topics such as fiduciary duties, excessive fee litigation, forfeiture disputes, health plan fee challenges, and prohibited transaction claims. The blog analyzes court decisions, circuit splits, and Supreme Court activity affecting ERISA class actions and fiduciary breach claims. It also addresses practical implications for plan sponsors and fiduciaries, including compliance strategies and risk management in retirement and health benefit plans.
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Goldman Sachs Successful in Getting 401(k) Fee Class Action Dismissed
A New York district court recently summarily dismissed, with prejudice, a 401(k) plan participant’s putative class action complaint alleging breaches of fiduciary duty. Falberg v. Goldman Sachs Grp., Inc., No. 19-cv-9910, 2022 U.S. Dist. LEXIS 167064 (S.D.N.Y. Sep. 14, 2022). …
Court Finds No ERISA Liability for Plan Provider Who Delivered Self-Interested Rollover Advice
A New York federal court recently held that a service provider for employer-sponsored retirement plans was not liable as a fiduciary under the Employee Retirement Income Security Act (“ERISA”) when it used participant information to encourage certain plan participants to…
Failure to Identify Sound Comparisons Sinks ERISA Fee, Investment Claims in Eighth Circuit
Plaintiffs must plead a “sound basis for comparison—a meaningful benchmark” — to sustain their claims of imprudent investment and excessive fee against a 401(k) plan, the federal appeals court in St. Louis has held, dismissing a class action lawsuit for…
Eighth Circuit Holds Principal Did Not Breach Its Fiduciary Duty to 401(k) Plan Participants Despite Conflict of Interest
The U.S. Court of Appeals for the Eighth Circuit recently affirmed a District Court’s finding that Principal Life Insurance Company (“Principal”) did not breach its fiduciary duties regarding its stable value contract for 401(k) plans. Rozo v. Principal Life Ins.…
7th Circuit Ruling Sheds Light Into the post-Hughes 401(k) Litigation Era
Since the Supreme Court’s January ruling in Hughes v. Northwestern University, circuit courts throughout the country have issued varying rulings regarding 401(k) fee litigation cases. These include the Ninth Circuit in Trader Joe’s Co. and Salesforce.com, Inc., and the…
6th Circuit Tosses ERISA Fiduciary Breach Claims
On June 21, 2022, CommonSpirit Health defeated a putative class action brought by former employees who alleged that the company mismanaged their 401(k) plan by offering higher-cost, actively managed investment options when lower-cost index funds with better returns were available.…
Novel ERISA Preemption Questions Presented by U.S. Supreme Court’s Dobbs Decision
The U.S. Supreme Court’s opinion in Dobbs v. Jackson Women’s Health Organization, No. 19-1392 (June 24, 2022), overruling Roe v. Wade and Planned Parenthood v. Casey, has far-reaching consequences across many areas. This special report examines the potential impact…
DOL, Recordkeeper Square Off in Confidentiality Disputes
The DOL’s cybersecurity investigation into Alight Solutions, LLC, a retirement plan recordkeeper, has queued up court rulings on the reach of the DOL’s subpoena power that may have important implications for ERISA plan sponsors and their respective recordkeepers and service…
Universal Health Loses Appeal to Undo 60,000-Person Class in Excessive Fee Case
The Third Circuit Court of Appeals recently held that as the plan fiduciary of Universal’s defined contribution plan, Universal Health Services Inc. and its plan investment committee (collectively “Universal”) must face a class action claiming its retirement plan included imprudent…