Think that 401(k) lawsuits are over? Think again. Emboldened by recent successes and armed with more information through the fee disclosure regulations and benchmarking data, plaintiff attorneys’ next target could be advisors, warns Fred Reish of Drinker Biddle.
Reish views the relevant law as more like a sledgehammer than a slingshot. Section 408(b)(2) only details the fees charged, he notes — providing no sense of whether those fees are reasonable without applicable benchmarking data. Reish warns that advisors whose fees are above the norm could become targets of an ever-active plaintiffs’ bar that is more likely to find willing plan sponsors reacting to a media focused on fees. Read more here.
