The U.S. Supreme Court has declined to review a lawsuit accusing trustees and advisers of a Teamsters-affiliated retirement plan of allowing excessive fees and risky investments, leaving a Second Circuit ruling in place.
The decision effectively ends the retiree’s effort to revive the proposed class action.
The Allegations
The lawsuit alleged that plan fiduciaries failed to properly oversee investments and allowed participants to bear unnecessary costs through excessive fees and imprudent investment strategies.
Such claims have become increasingly common as retirement plan participants closely scrutinize fiduciary conduct under ERISA.
The Second Circuit previously rejected the claims, and the Supreme Court’s refusal to intervene leaves that decision undisturbed.
What the Denial Means
A Supreme Court denial is not an endorsement of the lower court’s reasoning. Instead, it simply means the Court chose not to hear the case.
Still, the denial provides some comfort to plan fiduciaries facing similar allegations.
Looking Ahead
Key takeaways:
- ERISA fee and investment litigation remains active nationwide
- Supreme Court review remains difficult to obtain
- Fiduciaries continue facing heightened scrutiny
- Lower-court standards will continue governing similar disputes
The decision leaves existing fiduciary liability standards unchanged for now.
For further details, please contact the lawyers at Tobia & Lovelace Esq., LLC at 201-638-0990.