401(k) Individual Suits After LaRue v. DeWolff
April 2, 2008
On February 20th, the U.S. Supreme Court ruled unanimously in LaRue v. DeWolff, Boberg & Associates, Inc. that individual participants in 401(k) plans can sue when their employers or retirement sponsors ignore their investment instructions or otherwise mishandle their investment accounts.
In a separate concurrence, two justices suggested that the remedies available to employees could be limited, making the true impact of the ruling uncertain. Employers' counsel fear the ruling may result in a flood of individual lawsuits against plan sponsors.
In the wake of this ruling, counsel for plan sponsors should take a critical look at how their clients' 401(k) plans are managed and advise them of steps to take to reduce the likelihood of ERISA litigation or minimize liability exposure if they are sued.
Listen and participate from your telephone as our panel of employee benefits attorneys reviews the LaRue decision and its implications and offers best practices for plan sponsors to minimize liability exposure for 401(k) plan administration.
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