Seventh Circuit Again Grants Class Certification In Excessive Fee Case

On remand from the Seventh Circuit, a federal district court in Illinois granted class certification in a case where participants in a Boeing 401(k) plan alleged that Boeing breached its fiduciary duties under ERISA by: (i) causing the plan to pay excessive administrative fees; (ii) failing to disclose material information regarding administrative fees; and (iii) investing imprudently in certain mutual funds. Spano v. Boeing Co., 2013 U.S. Dist. LEXIS 133948 (S.D. Ill. Sept. 19, 2013). In so ruling, the district court determined that plaintiffs’ decision to create subclasses (one for each of the mutual funds at issue) and limit putative members to individuals who participated in the plan during the time in which the alleged fiduciary breaches occurred properly addressed the Seventh Circuit’s concern that the original class of all plan “participants from the past and future” was impermissibly “breathtaking in scope.”


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Proskauer - Employee Benefits & Executive Compensation Blog | Attorney Advertising

Written by:

more+
less-

Proskauer - Employee Benefits & Executive Compensation Blog on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×