Popular, Fiduciary Duty, Investment Management

Trustees, ESG and Investments – key considerations

Walkers on 7/1/2025

As global attention sharpens on climate change and social justice issues, sustainability and responsible governance are increasingly becoming higher priorities for 'Millennial' and 'Gen Z' Beneficiaries....more

Texas Federal Court Allows an ERISA Fiduciary Challenge Against Alleged "ESG Investing" Without Any ESG Funds

Troutman Pepper Locke on 5/16/2025

On January 10, 2025, in Spence v. American Airlines, a federal district court in Texas ruled that American Airlines (the company) and the committee overseeing its 401(k) plans (the committee) breached their duty of loyalty...more

Spence v. American Airlines: A Texas Court’s View of the Duty of Loyalty under ERISA

Verrill on 3/7/2025

Since we last discussed environmental, social, and corporate governance (“ESG”) developments in the context of ERISA retirement plans, ESG litigation has taken a rather unexpected turn. Although the plan lineup in Spence v....more

Judge Finds American Airlines Breached its Fiduciary Duty of Loyalty by Allowing Investment Manager to Prioritize ESG Goals with...

Fenwick & West LLP on 1/20/2025

On January 10, 2025, the U.S. District Court for the Northern District of Texas found that American Airlines and its employee benefit committee (EBC) breached their fiduciary duty of loyalty under the Employee Retirement...more

EDVA Judge Allows Pension Investment Expert to Testify in Class Action ERISA Case

Troutman Pepper Locke on 6/4/2024

A recent decision by Senior District Judge Robert Payne on a Daubert motion in class action litigation against a pension fund offers some helpful lessons on challenging expert witnesses in the EDVA. Trauernicht v. Genworth...more

New York District Court Rejects ERISA Excessive Fee Claims as Insufficient

Proskauer - Employee Benefits & Executive... on 1/25/2023

A district court in New York recently dismissed a putative class action challenging retirement plan recordkeeping and investment management fees. The case is Singh v. Deloitte LLP, No. 21-cv-8458, 2023 WL 186679 (S.D.N.Y....more

DOL Warns Sponsors against Permitting Cryptocurrency-Related Investments on 401(k) Plan Investment Menus

Cadwalader, Wickersham & Taft LLP on 4/12/2022

The U.S. Department of Labor (“DOL”) last month issued Compliance Assistance Release No. 2022-1 - 401(k) Plan Investments in “Cryptocurrencies” (the “Release”) in which it strongly cautions ERISA plan fiduciaries to use...more

Is Crypto Too Cryptic for Your 401(k) Plan?

Jackson Lewis P.C. on 3/22/2022

It started sometime last year and, in hindsight, was inevitable. Clients with 401(k) plans and a crypto-savvy employee population began asking whether they could offer cryptocurrency as a plan investment option. In the...more

Department of Labor Teases Cryptocurrency Interest

Morgan Lewis - ML Benefits on 9/30/2021

Hinting that the US Department of Labor (DOL) is currently working on guidance related to cryptocurrency, the Acting Assistant Secretary for the DOL’s Employee Benefits Security Administration recently commented that the DOL...more

Kirschner v. JPMorgan Chase Holds that Syndicated Bank Loans Are Not Securities

Herbert Smith Freehills Kramer on 5/28/2020

On May 22, Judge Gardephe granted a motion to dismiss in Kirschner v. JPMorgan Chase Bank, N.A., a case that, among other things, considered whether the origination and distribution of a syndicated bank loan is subject to...more

SEC Identifies Policies, Procedures and Disclosures Related to Registered Investment Advisers’ Proxy Voting Responsibilities and...

Proskauer Rose LLP on 9/12/2019

On August 21, 2019, the Securities and Exchange Commission issued two interpretive releases involving proxy voting and proxy voting advice. In the first release, the SEC provided guidance regarding the responsibilities of...more

In Focus: Deciphering the SEC’s Standard of Conduct for Investment Advisers

Morgan Lewis on 7/15/2019

The SEC’s interpretation of the investment adviser standard of conduct appears to refine the contours of the fiduciary duty that investment advisers owe their clients under the Advisers Act, enhance disclosure obligations,...more

Oracle Granted Partial Summary Judgment in 401(k) Fees/Investment Option Case

McDermott Will & Schulte on 3/26/2019

The US District Court for the District of Colorado granted partial summary judgment to 401(k) fiduciaries, holding that ERISA’s six-year statute of repose barred some claims and rejecting challenges to the plan’s fees....more

PSERS Takes Action to Reduce Fees Paid to External Investment Managers

Jones Day on 8/27/2018

This development represents just one aspect of the ongoing debate over active versus passive asset management. Earlier this month, Pennsylvania's largest public pension fund, the Public School Employees' Retirement System...more

Victory for NYU After First Trial in the 401(k) Fee Cases Filed Against Colleges and Universities

Littler on 8/13/2018

In the past two years, more than 16 prominent colleges and universities across the country have been targeted by class action lawsuits filed under the Employee Retirement Income Security Act (ERISA) challenging the fees and...more

Did Santa Give the Insurance Industry a Lump of Coal or a Diamond in the Rough? The Proposed Suitability and Best Interest...

Carlton Fields on 1/15/2018

As reported in our November 28 client alert, the National Association of Insurance Commissioners’ (NAIC) Annuity Suitability Working Group (Suitability WG) circulated the proposed Suitability and Best Interest Standard of...more

WPI Insider Briefing: After ACA "Repeal and Replace" Effort Fails, What's Next For Employers on Health Care and Other Workplace...

Littler on 8/11/2017

Last month began with significant momentum but long odds that Senate Republicans would pass legislation repealing and replacing the Affordable Care Act (ACA). In the early hours of July 28, GOP efforts came to a screeching...more

Checklist for Strengthening Your Defenses to 401k Plan Class Actions

Orrick, Herrington & Sutcliffe LLP on 8/7/2017

The last ten years have seen a proliferation of high-profile class actions alleging breach of ERISA fiduciary duties of prudence and loyalty against plan fiduciaries. The claims are usually based upon alleged excessive...more

A Compilation of Enforcement and Non-Enforcement Actions

Foley & Lardner LLP on 11/2/2015

Non-Enforcement - SEC Decides Against Mounting an Appeal in Koch Ruling - The July 2015 ruling by the D.C. Circuit Court in Koch v. SEC will apparently not be challenged by the SEC. The Court ruled in that...more

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