The Labor Department’s fiduciary rule may give IRA investors access to jury trials in class action lawsuits, a right that has been denied to the vast majority of plaintiffs in class actions brought under the Employee Retirement Income Security Act.
Under the rule’s private right of action provision, IRA investors can bring class action claims if the Best Interest Contract Exemption—which includes a warranty guarantying a fiduciary standard of care for advice on IRA investments--is breached.
As a general matter, those claims will be brought under contract law in state courts, and not under ERISA, a federal statute that in most cases is deliberated in federal courts.
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