Rachel P. Kaercher and James Fielding | Littler

January 25, 2023

Lawsuits against employers offering retirement benefit plans have been on the rise.  Recent suits, discussed in this update, have provided some guidance for employers. 

In January 2022, the Supreme Court issued the Hughes v. Northwestern University opinion that could have clarified the appropriate pleading standard for claims alleging a breach of the duties imposed under ERISA on the fiduciary of a 401(k) retirement plan.  The much-anticipated decision largely avoided dealing with this issue, however, finding only that the Seventh Circuit erred by relying too heavily on the diverse menu of investment options offered and the participants’ ultimate choice over their investments to excuse allegedly imprudent decision-making by the plan’s fiduciaries.

In remanding the case for further evaluation under the proper pleading standard, the Court observed…READ MORE