Heightened attention is currently being paid to ERISA excessive fee cases as many continue to withstand dismissal motions. Cases falling under the Employee Retirement Income Security Act of 1974 (ERISA) revolving around excessive fees have been able to push past these procedural hurdles at a remarkably high rate, drawing the focused consideration of legal professionals worldwide.
Recently, federal appellate courts have begun to tighten the pleading standards for ERISA-related breach of fiduciary duty claims that are based on fees or performances of funds in 401(k) and 403(b) plans. These plans, often the subject of ERISA disputes, require the plaintiff to fulfill certain conditions to bring forth a viable claim.
More specifically, a plaintiff aiming to support claims on the ground of fees or performance needs to, among other parameters, establish “a meaningful benchmark” as a standard of comparison for the cost and performance of their plan’s funds. In instances where the comparison holds merit, the lawsuit can potentially progress, surviving attempts at dismissal.
Dorsey & Whitney LLP, a preeminent law firm in the field, has provided insightful commentary on the evolving landscape surrounding these ERISA excessive fee cases.
Remaining up-to-date with these ongoing developments in ERISA case law is essential for legal professionals working in related spheres, specifically those dealing with 401(k) and 403(b) plan disputes. The evolving jurisdiction demonstrates a trend towards more stringent standards for claims, underscoring the need for careful case preparation, solid argumentation, and attention to detail in these lawsuits.