ERISA lawsuits don’t award emotional distress or punitive damages. Instead, the focus is on restoring financial losses to the retirement plan. If a plaintiff proves that fiduciaries allowed excessive fees, used underperforming funds, or made self-interested decisions, the court may order the fiduciaries to reimburse the plan. That money goes back into the plan—not directly…
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…
After the Supreme Court’s decision in Cunningham, the answer is: yes, hiring a third-party 401(k) service provider—if not documented and benchmarked appropriately—can expose a company to litigation. Let’s be clear: the lawsuit itself may not be about whether the provider performed poorly or charged too much. It may simply focus on the fact that the…
Prior to Cunningham v. Cornell, many ERISA lawsuits were dismissed early for failing to allege that fees paid by the plan were unreasonably high. But the Supreme Court’s ruling changed that. Now, if a retirement plan pays any amount to a vendor that qualifies as a “party in interest,” a lawsuit can proceed—even without claims…