It’s no surprise that as DC plans have grown in popularity, so have lawsuits. Most of the well-known lawsuits have been against larger plans, but that’s no reason for smaller plans or their advisors to ignore the growing phenomenon. It may also be a good way to motivate plan sponsors to incorporate best practices.
The law firm of Mayer Brown lists the top 10 reasons to have an ERISA litigator on speed dial:
- The U.S. Supreme Court is taking more cases, including the Tibble case and last year’s Fifth Third Bancorp decision on the use of company stock.
- Investigations by the DOL are increasing at a dramatic rate.
- Recent large settlements point to lapses of a prudent process by plan sponsors and providers.
- More companies are de-risking their DB plans.
- Heightened disclosure will continue and provide more opportunities for the plaintiff’s bar.
- The pending DOL conflict-of-interest rule would broaden the definition of fiduciary.
- Conflict of interest claims are enjoying a wider berth.
- Courts are allowing for expanded remedies.
- Attorneys’ fees are easier to recover.
- Attorney-client privileges are being used against plan sponsors, with courts asking, “Who’s the client?”
So as Michael Conrad warned the squad room on every episode of “Hill Street Blues”: Let’s be careful out there.
