The Cunningham decision affects a huge segment of the U.S. economy.

There are roughly 710,000 retirement plans covered under ERISA. The vast majority use third-party vendors—recordkeepers, investment platforms, custodians, or advisors. If even half of these plans engaged with a “party in interest” through payment of any fee, more than 350,000 plan sponsors could technically be exposed to litigation under the Court’s standard.

Small- and mid-sized businesses are particularly vulnerable, as they often lack in-house ERISA counsel and may use bundled providers without conducting detailed fee benchmarking.

The ruling doesn’t guarantee that all these plans will be sued—but it does mean they can’t rely on early dismissals if they are. The litigation landscape has shifted. Proactive compliance, fee transparency, and prudent vendor selection are no longer best practices—they are essential safeguards.