Seyfarth Synopsis: Since September 2023, there have been at least 25 lawsuits filed claiming the ability to choose between using 401(k) forfeitures to reduce plan expenses or the plan sponsor’s contributions is a fiduciary choice, and that choosing to reduce the plan sponsor’s contributions constitutes a violation of ERISA’s fiduciary duties. In the latest decision
In this episode, Richard and Sarah are joined by Ian Morrison, a Partner in Seyfarth’s ERISA Litigation group to delve into a new line of cases alleging that forfeitures are plan assets, and must be used to benefit plan participants. The plaintiffs in these cases are claiming that using forfeitures to offset employer contributions
Tuesday, October 24, 2023
2:00 p.m. to 3:00 p.m. Eastern
1:00 p.m. to 2:00 p.m. Central
12:00 p.m. to 1:00 p.m. Mountain
11:00 a.m. to 12:00 p.m. Pacific
This year, we’ve seen a number of key developments that are shifting the landscape of ERISA Litigation.
Join us for this update, where our presenters couple their
By: Michelle M. Scannell and Kathleen Cahill Slaught
Seyfarth Synopsis: A district court recently denied a motion to dismiss a 401(k) 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
By Amanda Sonneborn, Megan Troy, and Tom Horan
Seyfarth Synopsis: Since August 2016, sixteen elite colleges and universities have faced class action lawsuits related to management of their retirement plans. After five cases previously survived motions to dismiss, the University of Pennsylvania became the first college to secure a complete victory when accused
By: Mark Casciari and Gina Merrill
In 2006, a number of large companies that sponsored ERISA 401(k) plans were sued by clients of the Schlichter, Bogard & Denton law firm for, among other things, excessive 401(k) plan provider fees. The fee litigation placed at issue ERISA Section 413’s limitations rule, which requires the filing of
By: Ian Morrison, Sam Schwartz-Fenwick and Abigail Cahak
On August 20, 2014, the U.S. Department of Labor’s (“DOL”) Employee Benefits Security Administration announced that it is requesting information on the use and prevalence of brokerage windows in 401(k) and similar plans.
Brokerage windows are a common feature in defined contribution plans (most commonly 401(k)
By: Mark Casciari and Anne Harris
In March 2013, we blogged about the Ninth Circuit’s decision in Tibble v. Edison Int’l, No. 10-56406 (9th Cir. Mar. 21, 2013). The plaintiffs in Tibble alleged that revenue sharing violated plan terms. The Ninth Circuit found against the plaintiffs, and also applied a six year statute of
By: Ian Morrison and Nadir Ahmed
In Bidwell v. University Medical Center, Inc., Case No. 11-5493, the Sixth Circuit found that plan fiduciaries are shielded from claims over investment losses where they transfer defined contribution accounts into a Qualified Default Investment Alternative (“QDIA”), after notice to the participant, even where the participant had previously
By: Amanda Sonneborn, John Duke and Sam Schwartz-Fenwick
In David v. Alphin (Case No. 3:07-cv-00011-MOC), the U.S. District Court for the Western District of North Carolina dismissed as time barred a putative class action, which alleged that Bank of America and various plan fiduciaries breached their ERISA fiduciary duties by selecting Bank of America-affiliated mutual