20 Jun 2023
ERISA Litigation: How Poor (and Long) Must Poorer Investment Performance Be?
Several recent cases found dismissal appropriate in ERISA litigation alleging fiduciary breach for failing to adequently review (and eliminate allegedly underperforming) plan investments. The Beldock v. Microsoft Corp. court applied a heightened standard for pleading a survivable claim of imprudent selection and monitoring of investments. Recent similar dismissals with prejudice held that performance-only allegations could not survive dismissal. However, in those cases the courts still analyzed plaintiffs' benchmark comparators, concluding that they were not meaningful. Not here! See why the Beldock decision held for defendants without addressing the question of whether plaintiffs presented meaningful comparators to performance of the Funds.
Related Content
- ERISA Litigation: Excessive Fees Class Actions Video
Learn more about ERISA fee litigation by watching our video on the topic. - ERISA Claims and Litigation Resource Kit
See all of our Practical Guidance documents on ERISA claims and litigation by referencing our ERISA Claims and Litigation Resource Kit.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- Retirement Plans. IRS provides interim guidance on expansion of its EPCRS program as provided under the SECURE 2.0 Act (Pub. L. No. 139-22, Div. T). SECURE 2.0 expanded the IRS’s self-correction program to permit plan sponsors to self-correct “eligible inadvertent failures” unless the plan or plan sponsor is under IRS examination and has failed to demonstrate a commitment to self-correct (outside of insignificant failures). IRS Notice 2023-43.
- Health and Welfare Plans. The Federal Trade Commission issues a compulsory order to a third group purchasing organization (GPO) that negotiates drug rebates on behalf of PBMs. The compulsory order will require the GPO entity to provide information and records on its business practices. FTC News.
- Generative Artificial Intelligence (AI) Resource Kit offers a collection of current practical guidance on generative AI, ChatGPT, and similar tools.
- Bank Failure Resource Kit assembles Practical Guidance resources covering topics related to the recent bank failures.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- The Practical Guidance Journal Second Edition 2023 includes legal developments on generative AI, cautions related to the use of AI in hiring and assessing, and the new challenges long covid presents for employers.
- Check out the new Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 23 practice areas and find out how you can Become a Practical Guidance Author.
- Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
- Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID and more.
- New and Updated Practical Guidance Content
- Partnership and LLC Equity Compensation Resource Kit
- Section 404(c) Participant-Directed Investment Resource Kit
- Employee Benefits and Compensation Issues in Corporate Transactions Training Presentation
- Market Trends 1Q 2023: Employee Benefits and Executive Compensation in Corporate Transactions
- Market Trends 1Q 2023: Executive Employment Agreements
- Taxation of Compensatory Transfers of Property (IRC § 83)
- Pay Versus Performance Disclosure Statement
- 401(k) Plans in Stock Purchase M&A Transactions: A Buyer's Guide to Choosing Termination or Merger
- User’s Guide to SECURE 2.0
PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+