403(b) Retirement Plan Fee Litigation | April 2020 Update
Despite the COVID-19 pandemic, retirement plan litigation remains largely uninterrupted. Since our last comprehensive update on the status of 403(b) retirement plan lawsuits, there have been some significant updates:
- The George Washington University litigation appeal was denied, as was the Northwestern University litigation appeal. Judges previously dismissed both cases.
- A judge dismissed two of the remaining three counts that had not been previously dismissed against Cornell University, leaving just one count to proceed to trial.
- Massachusetts Institute of Technology settled their lawsuit for $18.1 million.
- Princeton and Emory Universities settled their lawsuits for amounts yet to be disclosed.
- The Supreme Court decided not to hear an appeal by the University of Pennsylvania to a 3rd Circuit partial reversal of a lower court ruling that had dismissed all claims.
- A motion for summary judgement by Columbia University was denied in their case.
- A new lawsuit against Ardent Health Services was filed in December of 2019.
- The terms of the $2.4 million Allina Health System settlement were announced.
The 403(b) Retirement Plan Litigation Status Chart below provides detailed information on each case.
The claims in these lawsuits cover a broad range of topics and issues. However, most are focused on the fees charted and investments used in retirement plans. We provide an in-depth exploration of the claims in our series, Fiduciary Breach Lawsuit Issues.
While not all claims are successful, in order to manage risk, plan sponsors should understand the issues and keep track of the litigation surrounding retirement plans.
Note: The information contained herein has been obtained from sources that are believed to be reliable. However, Cammack Retirement Group does not independently verify the accuracy of this information and makes no representation as to its accuracy or completeness. Information is as of the date indicated, based on the information available at that time.
Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.
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