Emily Costin will speak at this program hosted by Lorman Education Services. Avoid litigation in class action lawsuits and understand how to deal with them properly.
More than 130 class action lawsuits have been filed against plan fiduciaries alleging that fees charged to plan participants’ accounts have been excessively high, in breach of the fiduciaries’ duties under ERISA. There appears to be no end in sight for this type of litigation as more plaintiffs’ lawyers jump into the fray and novel theories of liability emerge. And where once only the largest 401(k) plans were targeted for litigation, new targets have emerged, including 403(b) plans of universities and hospitals and smaller plans. Fee cases aren’t the only source of concern. ERISA stock-drop cases alleging that employer securities in a plan are imprudent investments, which seemed to have become a thing of the past, may be coming back. New suits are also being brought against traditional pension plans. Forewarned is forearmed. It is critical for plan fiduciaries and those who advise them to understand these exposures and learn how best to avoid the litigation or mount a strong defense.
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