News & Analysis as of

Excessive Fees 401k Employee Benefits

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Humana wins 401(k) excess fee case

A federal judge in Kentucky threw out a case against Humana Inc., claiming former employees had failed to provide sufficient evidence that the company charged excessive record-keeping fees and failed to adequately search for...more

Dorsey & Whitney LLP

The Eighth Circuit’s “Meaningful Benchmark” Requirement for 401(k) “Excessive Fee” Lawsuits Continues to Generate Dismissals

Dorsey & Whitney LLP on

On August 21, 2023, the U.S. District Court for the District of Minnesota largely dismissed—for a second time—a putative ERISA class action challenging “excessive” fees and “poor” performance in a 401(k) plan. Fritton v....more

Jackson Lewis P.C.

ERISA Fiduciary Breach Action Narrowly Hurdles Motion to Dismiss in Minnesota

Jackson Lewis P.C. on

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),...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Nestle on verge of winning most of their case

A U.S. District Court federal magistrate judge in the Eastern District of Wisconsin mostly sided with Nestlé USA Inc by recommending the dismissal. of a class action lawsuit alleging fiduciary negligence and self-dealing in...more

Holland & Knight LLP

Low-Cost Index Funds in the Crosshairs of New 401(k) Lawsuits

Holland & Knight LLP on

Since late July, at least 10 lawsuits have been filed against large 401(k) plan sponsors that offer certain BlackRock Inc. target-date funds (TDF) among their investment options. In an unexpected pivot away from the 401(k)...more

Groom Law Group, Chartered

Sixth Circuit Addresses Key Issues in Excessive Fee Lawsuits

On June 21, 2022, the Sixth Circuit in Smith v. CommonSpirit Health unanimously affirmed the decision of the Eastern District of Kentucky dismissing with prejudice a putative class representative’s ERISA fiduciary breach...more

Proskauer Rose LLP

2 ERISA Rulings Highlight Need for Different Defense Tactics

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Albert Einstein is famously credited with saying, "Insanity is doing the same thing over and over and expecting different results." This adage comes to mind as defense counsel continue to resort to the same strategies for...more

Fisher Phillips

Forecast: April 2022 Edition

Fisher Phillips on

Welcome to FP Forecast, a monthly outlook featuring Fisher Phillips thought leaders providing their insights into what employers can expect in 2022 and beyond. By following along each month, you’ll be in the best position to...more

Proskauer - Employee Benefits & Executive...

Ninth Circuit Revives Second Excessive Fee 401(k) Plan Litigation

On Friday, for the second week in a row, the Ninth Circuit reversed dismissal of a 401(k) plan excessive fee litigation challenging the offering of retail share classes of mutual funds instead of cheaper institutional share...more

Jackson Lewis P.C.

New York Federal District Court Dismisses 401(k) Fee Class Action

Jackson Lewis P.C. on

A New York district court recently dismissed, without prejudice, a 401(k) plan participant’s putative class action complaint alleging breaches of fiduciary duty. The plaintiff alleged that the plan fiduciary-defendants...more

Proskauer - Employee Benefits & Executive...

District Court Declines to Dismiss 401(k) Fee Litigation Case in First Decision Post-Hughes

In the first decision since the Supreme Court’s ruling in Hughes v. Northwestern Univ., No. 19-1401, 595 U.S. ___ (U.S. Jan. 24, 2022), a Georgia federal district court held in favor of plaintiffs and declined to dismiss...more

Clark Hill PLC

Supreme Court Declines to Close Floodgates on 401(k) and 403(b) Fee Litigation

Clark Hill PLC on

The past 15 years have witnessed a steady stream of lawsuits alleging that employers’ 401(k) or 403(b) plans forced participants into underperforming or overpriced investment options, or that plan participants’ accounts were...more

Fisher Phillips

Top 10 Workplace Law Predictions for 2022

Fisher Phillips on

Workplace law has changed dramatically over the past two years of the pandemic. Unfortunately, 2022 (or is it “2020 too”?) is shaping up to be another year full of new rules and regulations within this volatile area of law....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Hell hath no fury than a former employee scorned

I always say that the reason I don’t have employees is I was once an employee too. I was never totally happy with pay and benefits and I don’t know if I ever could be totally satisfied where I worked. I was a good employee,...more

Goodwin

ERISA Litigation Update - July 2021

Goodwin on

Welcome to Goodwin’s ERISA Litigation Update. Litigation involving ERISA-governed benefits plans has exploded in recent years. Lawyers in our award-winning ERISA Litigation practice have extensive experience litigating these...more

Goodwin

ERISA Litigation Update - April 2021

Goodwin on

Welcome to Goodwin’s ERISA Litigation Update. Litigation involving ERISA-governed benefits plans has exploded in recent years. Lawyers in our award-winning ERISA Litigation practice have extensive experience litigating these...more

Proskauer - Employee Benefits & Executive...

District Court Dismisses ERISA Fee Litigation against 401(k) Plan for Failure to Exhaust

A federal district court in Georgia recently dismissed claims brought by a participant in the Rollins, Inc. 401(k) Plan (the “Plan”), on behalf of a putative class of all plan participants, alleging that defendants breached...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Wisconsin Becomes a Hotbed for ERISA Class Action Claims

In recent months, Wisconsin federal courts have witnessed a dramatic increase in class litigation raising breach of fiduciary duty claims under the Employee Retirement Income Security Act of 1974 (ERISA). These claims target...more

Proskauer - Employee Benefits & Executive...

“Divane Intervention”: ERISA 401(k) Plan Investment Claims Dead On Arrival

A federal district court in Illinois recently dismissed “excessive fee” and “imprudent investment” claims against the plan fiduciaries of the CareerBuilder 401(k) plan fiduciaries, relying largely on the Seventh Circuit’s...more

Jackson Lewis P.C.

Northrop Grumman Agrees To Settle 401(k) Excessive Fee Suit

Jackson Lewis P.C. on

Northrop Grumman has agreed to pay $12,375,000 to settle a class action brought under the Employee Retirement Income Security Act (“ERISA”) by participants in its 401(k) plan. The parties reached the initial terms of this...more

Proskauer - Employee Benefits & Executive...

Arbitrator To Decide Whether ERISA Fiduciary Claims Should Be Arbitrated

A federal district court in Texas referred to arbitration a 401(k) plan participant’s ERISA breach of fiduciary duty action based on allegations that certain plan investment options charged excessive fees...more

McDermott Will & Emery

ERISA Health Plan Fiduciaries Defeat DOL’s Excessive Fee Claims

McDermott Will & Emery on

In one of the first ERISA cases to address claims against fiduciaries for excessive health plan fees, the court entered judgment in favor of the defendants on all counts. The decision addresses health plan fiduciary standards...more

McDermott Will & Emery

ERISA Plan Controversy: Rising Stakes for Those Unprepared

McDermott Will & Emery on

WHAT’S THE EXPOSURE? • Settlements up to $140 million • Last year alone, settlements of $17 million, $22 million, $24 million, and among others • Plaintiffs’ lawyers generally get 1/3 of the settlement amounts • Plaintiffs’...more

Littler

Victory for NYU After First Trial in the 401(k) Fee Cases Filed Against Colleges and Universities

Littler on

In the past two years, more than 16 prominent colleges and universities across the country have been targeted by class action lawsuits filed under the Employee Retirement Income Security Act (ERISA) challenging the fees and...more

Proskauer Rose LLP

ERISA Newsletter - First Quarter 2018

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Despite the change in seasons, there appears to be no change in the pace of complex and class action ERISA litigation. Investments in defined contribution plans—both 401(k) and 403(b) plans—continue to be the leading target...more

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