ERISA and Fiduciary Class Litigation
An increase in ERISA lawsuits claiming breach of fiduciary duty in connection with the administration and operation of 401(k) retirement plans has employers and plan fiduciaries taking notice. These cases, buoyed by a series of Circuit Court and United States Supreme Court decisions favorable to employee/participants, focus on the twin fiduciary duties of loyalty and prudence, including employers’ self-dealing with the plan and/or imprudent management of the plan’s investments and expenses.
Our ERISA team regularly provides counsel to management, including preventative advice and litigation defense in class-action conflicts. ERISA-related liability has become particularly prevalent with defined contribution plans (401Ks), which in comparison to defined benefits plans like pensions, lack the embedded financial incentives for employers to keep costs low and to closely monitor that all investments remains sound. Our team can help you wade through the complexity of ERISA and its application to defined contribution plans.