Recent Surge in 401(k) ERISA Class Actions: What’s at Issue and How Is It Potentially Impacted by Recent Supreme Court Decision in Intel v. Sulyma and Thole v. U.S. Bank N.A.

Description

Lawsuits against 401(k) plans and service providers are being filed on a near daily basis, and many of them share the same key allegations and claims. This discussion will explain those allegations, and the anticipated key defenses to such claims, as well as provide an overview of how those lawsuits are unfolding procedurally. Moreover, the U.S. Supreme Court has issued rulings in ERISA cases that may impact that strategy for how these cases are litigated.

Specifically, in Intel Corp. v. Sulyma the Supreme Court ruled that merely disclosing 401(k) plan information online or in disclosures is not sufficient to shorten the time that participants have to sue for a breach of fiduciary duty and that "actual knowledge" determines the timeframe for litigation. The Court examined the use of technology as an evidentiary tool, and the relevance of circumstantial evidence--all of which are critical to fiduciary responsibility and the outcome of litigation

In Thole v. U.S. Bank, the Court ruled that plaintiffs lacked standing to sue the plan fiduciaries for mismanagement of funds and self-dealing since the participants continued to receive their fixed pension payments. This substantially limits the circumstances under which pension plan participants can sue when their plan payments are not impacted by the outcome. This decision has potential implications for lawsuits filed against 401(k) plan fiduciaries.

Listen as our panel discusses the impact of the Court's decisions on fiduciaries and plan service providers and offers next steps and best practices for employers, as well as best practices in preventing and litigating claims.