Summary
In a case that could give employees who suffer losses in their 401(k) accounts a way to seek redress even when there is no total loss in the plan's assets, the U.S. Supreme Court is considering whether ERISA provides a private right of action for losses caused by an administrator's failure to invest contributions as directed by the employee.
The stakes in the case, LaRue v. DeWolff, Boberg, & Associates, No. 06-856, are particularly high because of the precedent it could set for individuals seeking to recover losses they suffer due to gaffes by a fiduciary even when no harm is suffered by the entire plan.See the full content of this document
Extract
U.S. Supreme Court Considers Right to Sue Under Erisa
Since ERISA has such broad preemptive language, a federal suit is the only recourse for these individuals. Several cases, including those brought by employees of companies such as Enron and WorldCom, are pending in federal distr...
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