US Court of Appeals for the Seventh Circuit Archives

US Court of Appeals for the Seventh Circuit

A Light in the Dark: Seventh Circuit Helps Clarify New Pleading Standards for 401(k) Fee Cases

by William Hameline, J. Christian Nemeth and Diane Morgenthaler | Sep 29, 2022 | Benefit Controversies, Employee Benefits, Executive Compensation, Fiduciary and Investment Issues, Retirement Plans

A recent US Court of Appeals for the Seventh Circuit case supplies answers to many questions left open in 401(k) fee litigation cases after the US Supreme Court’s ruling earlier this year in Hughes v. Northwestern University. Specifically, to survive a motion to dismiss in the Seventh Circuit, the recent ruling in Albert v. Oshkosh Corp. reiterated that plaintiffs must allege both high fees and substandard services or performance in comparison to other similar 401(k) plans.

Illinois Federal Court Dismisses ERISA Claims Against 401(k) Fiduciaries

by Richard J. Pearl and J. Christian Nemeth | Aug 5, 2020 | Benefit Controversies, Fiduciary and Investment Issues, Retirement Plans

The Employee Retirement Income Security Act of 1974 (ERISA) requires plan fiduciaries to act prudently and loyally when making decisions about the plan. In Martin v. CareerBuilder, LLC, a federal district court held that the complaint’s allegations about expensive recordkeeping costs and imprudent investment options failed to give rise to an inference that the defendants violated their ERISA obligations.