High court declines to close floodgates on 401(k) and 403(b) fee litigation

Employee Benefits

By Luke D. Bailey

Luke Bailey, senior counsel, Clark Hill advises public and private businesses and state and local government employers regarding employee benefits law and executive compensation.

Posted February 24, 2022 12:38 PM

The past 15 years have witnessed a steady stream of lawsuits alleging that employers’ 401(k) or 403(b) plans forced participants into underperforming or overpriced investment options, or that plan participants’ accounts were burdened by excessive recordkeeping fees.Recently, the U.S. Supreme Court, in Hughes v. Northwestern University, declined to follow a path laid out by the 7th U.S. Circuit Court of Appeals in 2020 that might have significantly diminished the flow of these lawsuits. For 401(k) and 403(b …

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