401(k) Retirement Plan Fee Litigation
The coronavirus pandemic and resulting mandated closures did not slow the volume of 401(k) retirement plan fee litigation during 2020. With more employees at home during a tumultuous year, many individuals had time to spend anxiously watching the volatile markets and ponder their retirement plan performance and fees. This year alone, there were 35 new 401(k) lawsuits, with the majority filed after the pandemic began in March.
The chart below lists the cases that were either newly filed, dismissed, went to trial, or settled, thus far, in 2020.
The claims in these lawsuits cover a broad range of topics and issues. However, most are focused on the fees charged 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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