Individuals may now sue 401(k) plans

Today’s Supreme Court decision will impact 50 million workers with $2.7 trillion invested in 401(k) plans.
FEB 20, 2008
The U.S. Supreme Court has unanimously ruled that individual participants can file lawsuits against plan administrators to recoup losses. Today’s decision will impact 50 million workers with $2.7 trillion invested in 401(k) plans. The case involves James LaRue of Southlake, Texas, who said the value of his stock holdings fell $150,000 when administrators at his retirement plan didn’t follow his instructions and switch to safer investments. The issue was whether the Employees Retirement Income Security Act allows an individual account holder to sue plan administrators who have allegedly breached their fiduciary duties. The language of the law refers to recovering money for the "plan" rather than for an individual. This raised the question of whether a participant could sue. The justices determined that lawsuits are allowed by individual participants.

Latest News

Investor accuses Canaras, U.S. Bank of hiding $50 million CLO loss
Investor accuses Canaras, U.S. Bank of hiding $50 million CLO loss

A trustee says it has no record of the investor now suing it for $50 million

New bill would let advisers unlock accredited investor status for clients
New bill would let advisers unlock accredited investor status for clients

Legislation seeks to loosen access to private markets to include professional advice from RIAs and broker-dealers, not just income or net worth.

More than a quarter of moms are planning to opt out of Trump accounts, survey finds
More than a quarter of moms are planning to opt out of Trump accounts, survey finds

"I just feel like I can get a lot further [by] opening a 529 account," said one respondent to the BabyCenter survey on Trump accounts.

IRA investors keep rushing toward lower-cost mutual funds
IRA investors keep rushing toward lower-cost mutual funds

New ICI research shows these retirement savers pay expense ratios nearly matching industrywide averages, extending years of fee declines

US household wealth grows more liquid than global peers
US household wealth grows more liquid than global peers

UBS data show American net worth is shifting from property to cash and funds faster than in seven other wealthy nations.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.