Class action attorneys have seen a boom in alleged ERISA violations, with dozens of lawsuits targeting institutional 401(k) and other retirement plans.
Litigation over retirement fees and investment plans has been steadily growing, and 2022 has already seen a flood of new cases with little end in sight as investors target big plans with big ERISA class actions.
The Employee Retirement Income Security Act of 1974 (“ERISA”), once viewed as a highly technical statute with limited appeal to class action attorneys, has seen a tremendous boom in 2022 as investors target institutional 401(k) and other retirement plans with dozens of class action lawsuits alleging a variety of ERISA violations – with some cases already certified.
Recently, Southern District of Florida Magistrate Judge Jonathan Goodman certified an ERISA class action against John Hancock over 401(k) foreign tax credits, and whether these credits should have been retained or credited to plan participants. In a lengthy and well-reasoned order, the Court cautioned the parties that, unless settled, the Court intends to take up several of John Hancock’s “myriad substantial, substantive arguments” at the summary judgment stage, and John Hancock need only succeed at one to ultimately prevail.
And in another Southern District of Florida ERISA class action ruling even more recently, Judge Robert Scolagranted defendant Baptist Health System’s motion to compel arbitration of claims related to alleged mismanagement of employees’ 403(b) plan by plan administrators. This ruling comes as 403(b) plan ERISA class actions alleging excessive fees and mismanagement have popped up across the country, including several major new suits filed just this month.
Against this backdrop of increasing ERISA class action litigation, the Supreme Court is expected to rule on whether heightened pleading standards apply to fiduciary duty claims under ERISA, and may take up a growing split among Circuits on the enforceability of ERISA arbitration clauses. Industry observers are closely monitoring these fast-moving developments, as are class action litigators and corporate defendants.
UWWM will likewise continue to monitor developments in this and other class and mass tort actions, and will publish additional bulletins and updates for the benefit of its clients and colleagues.
The select mediators and arbitrators at UWWM’s Center for National Class and Mass Actions have decades of specific experience in class and mass actions and are uniquely qualified to assist you in resolving these legal disputes. For further information and scheduling, please visit our website.
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