Tag: 401(k) Lawsuits
401(k) litigation – which had declined after the Great Recession – has surged again recently (see Figure). Over 100 new 401(k) complaints were filed in 2016-17 – the highest two-year total since 2008-09. A recent study explores the causes and potential consequences of this litigation. The extensive litigation in the 401(k) area reflects the Department…
The brief’s key findings are: Employers with 401(k)s are required to administer their plans for the “sole benefit” of workers, a standard that has been the subject of substantial litigation. Recent lawsuits have focused on excessive fees, although inappropriate investment options and self-dealing are other common reasons for suits. Court rulings in these cases often…
