403(b) Retirement Plan Fee Litigation: September 2020 Update
Despite the COVID-19 pandemic, there have been no signs of a slowdown in the litigation arena. Since our last comprehensive update on 403(b) retirement plan fee litigation in April, there have been some significant updates, including the following:
- For the first time in nearly two years, a new lawsuit was filed against a university (University of Miami)
- Four new healthcare lawsuits were filed, two against Sutter Health of California, and one each against Mercy Health of Illinois and MedStar Health of Maryland
- Cornell University settled on the one remaining count in their lawsuit that was scheduled to proceed to trial this month; terms have yet to be disclosed
- The 8th Circuit Court of Appeals overturned a trial court’s dismissal of one of the two claims in the Washington University in St. Louis case, while affirming the dismissal of a second claim
- The terms of the Emory University settlement were disclosed; Emory agreed to pay $16.75 million
- The terms of the Princeton University settlement were disclosed; Princeton agreed to pay $5.8 million
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 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.
Investment products available through Cammack LaRhette Brokerage, Inc.
Investment advisory services available through Cammack LaRhette Advisors, LLC.
Both located at 100 William Street, Suite 215, Wellesley, MA 02481 | p 781-237-2291