An impending market downturn could force plan sponsors to reevaluate 401(k) menus, as actively managed funds, often at the center of ERISA suits, may prove not to be the pariah claimed. (Photo: Shutterstock)
A recent decision in the U.S. Court of Appeals for the Ninth Circuit upholding the dismissal of a 401(k) excessive fee lawsuit against Chevron Corp. was a welcomed ruling for employer sponsors of retirement plans, but it alone will not slow the pace of claims, according to one prominent ERISA attorney.
“The Ninth Circuit was right in this case,” said Jamie Fleckner, Chair, ERISA Litigation at Goodwin. “But I don't think it will end up being a game changer.”
At issue before the Ninth Circuit was the question of what evidence plaintiffs need in support of claims of fiduciary breach to survive a plan sponsor's motion to dismiss the case.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
