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Fiduciary Rules and Practices

In MarketBeat, Alison J. Cohen discusses what happens when a fiduciary fails to properly monitor service providers and investments. READ MORE
Retirement plans—including 457(b) plans—have garnered heightened scrutiny. In MarketBeat, John Iekel writes about a recent blog entry that notes that IRS and DOL have increased the number of plans they audit, and highlights the importance of fulfilling fiduciary duties and not committing a... READ MORE
The law firm of Schlichter Bogard & Denton has a new target in an excessive fee suit—the plan’s investment advisor. More specifically, plaintiffs Michelle Mills, Coy Sarell, Chad Westover, Brent Aleshire, Barbara Kershner, Paula Schaub, and Jennifer Silva—who just two months ago filed suit[1] ... READ MORE
Springfield, Missouri-based O’Reilly Automotive, Inc. is the latest to draw the attention of the plaintiffs’ bar—or more precisely its $1.1 billion plan and 53,000 participants.  These plaintiffs—represented by Capozzi Adler PC (and FortmanSpann LLC) say that the defendants’ “mismanagement of the... READ MORE
In the wake of the SEC announcing a $6 billion securities fraud deal against Allianz Global Investors U.S. LLC (AGI U.S.), the firm off-loaded most of its U.S. investment management business as part of the terms of the deal.    The SEC announced May 17 that it had charged AGI U.S. and three former... READ MORE
A consulting firm’s data breach has triggered a second class action lawsuit by an affected participant on behalf of a class of some 2,500,000 individuals. The suit, brought by plaintiff Greg Torrano, claims that 2,537,261 individuals signed up for benefits plans through their employers—only to... READ MORE
After “nearly five years of intensive litigation,” a little over a month ago, a university 403(b) excessive fee suit settled—and now we know the terms. The suit was originally filed in June 2017 by Latasha Davis and Jennifer Elliott on behalf of Washington University’s plan of more than 24,000... READ MORE
The collective balance of the 403(b)s in the education sector rose steadily over a decade, but fees blunt the effect of that growth, the Government Accountability Office (GAO) suggests in a recent study.  In “Defined Contribution Plans:403(b) Investment Options, Fees, and Other Characteristics... READ MORE
The Bay State’s fiduciary rule encountered a major setback when a Massachusetts judge on March 30 invalidated the March 2020 rule that imposed a heightened fiduciary conduct standard on broker dealers and agents.  The March 30 ruling by Suffolk County Superior Court Judge Michael Ricciuti held... READ MORE
The law firm of Schlichter Bogard & Denton has a new target—with some familiar accusations. This time (Mills v. Molina Healthcare, Inc., C.D. Cal., No. 2:22-cv-01813, complaint 3/18/22) they are representing plaintiffs Michelle Mills, Coy Sarell, Chad Westover, Brent Aleshire, Barbara Kershner... READ MORE
It’s not all about “the Benjamins,” but a recent analysis of the nation’s private retirement system certainly puts a lot of emphasis on the accumulation of aggregate assets in retirement plans. The Morningstar report—“Retirement Plan Landscape Report, An In-Depth Look at the Trends and Forces... READ MORE
The recent 2022 NTSA Summit provided a unique opportunity to connect and also to gain from the insights of industry experts. Following is a quick rundown of our coverage of the event.  NTSA Leadership Flagg Thanked for Her Service as 2021 NTSA President https://www.ntsa-net.org/news-resources/... READ MORE
With a filing date looming, the parties in another excessive fee suit have announced a settlement.  The announcement came in a suit (Latasha Davis et al. v. Washington University in St. Louis et al.) originally filed in June 2017 by Latasha Davis and Jennifer Elliott[1] on behalf of the Washington... READ MORE
A $14 million excessive fee settlement has been approved by a federal judge, though there was an objection raised by one of the members of the participant class. U.S. District Judge Charles R. Norgle signed off on the deal presented by the parties (plaintiffs Chandra V. Brown-Davis, Yolanda Brown... READ MORE
Last week, a group representing advisors who sell annuities challenged the legality of the fiduciary rule in federal court—and now a second suit filed in a different federal court accuses the Labor Department of making law with a series of FAQs. This suit was filed in U.S. District Court for the... READ MORE
Noting that “pouring the same old wine into a new bottle does not change the result,” a new lawsuit seeks to vacate the Labor Department’s fiduciary rule as expressed in PTE 2020-02. The suit—filed by the Federation of Americans for Consumer Choice Inc., joined by several advisors and advisory... READ MORE
Looks like those hoping for some clarity on a threshold issue involving ERISA fee litigation will have to wait for another day. I’m referring, of course, to last week’s ruling by the Supreme Court on the case of Hughes v. Northwestern University et al.—a case that the law firm of Schlichter Bogard... READ MORE
The ink was barely dry on the Supreme Court’s recent ruling in an excessive fee case—and a federal judge who “…been awaiting the Supreme Court’s decision in Hughes v. Northwestern University,” has applied its ruling in refusing to dismiss another, similar suit. The participant-plaintiffs[1] here (... READ MORE
In a ruling likely to make it harder—perhaps much harder—to dismiss excessive fee lawsuits, the U.S. Supreme Court has remanded for further consideration a lower court decision that had favored the fiduciary defendants. In a unanimous decision[1] (Hughes v. Northwestern University et al., case... READ MORE
(Yet) another excessive fee suit has been filed against a billion dollar 403(b) plan by the Capozzi Adler law firm. Filing suit as participants (and former employees) of the Boston Children’s Hospital Corporation Tax-Deferred Annuity Plan are Adilson Monteiro, Karen Ginsburg, Jason Lutan, and... READ MORE

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