07.02.2018 07.00 CST
A new chapter may be opening in the ongoing saga of litigation against plan fiduciaries. A new target in this sage - plan vendors’ use of participant confidential financial to facilitate the cross-sales of non-plan financial products.
Plaintiffs in the lawsuit against the NYU retirement plans have filed an amended complaint. This new complaint challenges the use, by the plans’ recordkeeper, of participant confidential financial data and the recordkeeper’s cross-selling of non-plan financial products to plan participants.
15.10.2017 10.06 CDT
Lawsuits challenging the fiduciary practices of major colleges and universities have survived motions to dismiss. And so, the legal battles over plan costs will continue.
Higher Ed Fiduciary Lawsuits: A Scorecard and Some Observations
Over the past few months, decisions have been issued in six of these cases (the suits against MIT, The University of Pennsylvania, Johns Hopkins, NYU, Duke and Emory). Here are some comments on this first round of decisions.
The first round of court decisions has been issued in the fiduciary challenges to major colleges and universities. Overall, the courts have been allowed the core allegations - that the schools breached their fiduciary duties by allowing the plans to pay excessive fees – to continue. These decisions increase the likelihood that other schools will be subject to copycat fiduciary litigation.