News & Analysis as of

Class Action Excessive Fees

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Troutman Pepper

Class Action Alleging Usurious Fees and Tips Filed Against FinTech Provider of Earned Wage Access Services

Troutman Pepper on

A proposed class action lawsuit has been filed in the U.S. District Court for the Northern District of California against EarnIn, a FinTech provider of Earned Wage Access services, alleging that its optional fees and tips...more

The Wagner Law Group

Forfeiture Cases – Update

The Wagner Law Group on

Last year, we alerted you to the filing of several class action lawsuits alleging that plan fiduciaries violated their duties of prudence and loyalty under Title I of ERISA by applying forfeitures to reduce employer...more

Proskauer - Employee Benefits & Executive...

Eleventh Circuit Reiterates that Burden of Proving Loss Causation Stays with Plaintiffs

The Eleventh Circuit Court of Appeals recently affirmed a district court’s grant of summary judgment in favor of the fiduciaries of the Home Depot 401(k) plan, who defended against claims that they breached their fiduciary...more

Davis Wright Tremaine LLP

Proposed Visa/Mastercard Interchange Fee Settlement – A Sea Change or Drop in the Ocean for Merchants?

The series of antitrust class action lawsuits first brought by U.S. merchants against Visa and Mastercard in 2006 continued its winding path toward closure as the parties announced in March 2024 that they had reached a...more

Davis Wright Tremaine LLP

Excessive Fees or Incessant Litigation – Time for Legislative and Employer Action on Retirement Plans!

Commonly referred to as "excessive fee" litigation, class actions that allege retirement plan investments charge too much and earn too little have increased over the past two decades. Excessive fee cases are difficult to...more

Pillsbury Winthrop Shaw Pittman LLP

California’s Ban on Drip Pricing Begins July 1, 2024

Starting July 1, businesses transacting with California consumers must include “all mandatory fees or charges” in advertised prices. California’s self-proclaimed “most effective in the nation” ban on drip pricing goes into...more

Jackson Lewis P.C.

California District Court Dismisses Conclusory ERISA “Fee” Complaint Unsupported by Facts

Jackson Lewis P.C. on

A California federal court recently granted an employer win in an ERISA excessive fee case when it dismissed a proposed class action brought by an ex-employee of Schenker, Inc., a transportation logistics company. Partida v....more

Proskauer - Employee Benefits & Executive...

Fifth Circuit Reverses Dismissal of 401(k) Fees Claims

The Fifth Circuit recently reversed a district court’s dismissal of claims that the fiduciaries of a 401(k) plan breached the duty of prudence under ERISA by offering participants retail share classes instead of cheaper...more

Davis Wright Tremaine LLP

Stay ADvised: 2024, Issue 9

NAD Endorses Compliance With FTC Guide Requirements for Experts - Endorsements: Love them or hate them (and social media does love them so), they are subject to ever-increasing regulatory scrutiny, and compliance isn't...more

Snell & Wilmer

U.S. Supreme Court Passes on the Chance to Tighten Class Certification Review

Snell & Wilmer on

On April 15, 2024, the United States Supreme Court declined certiorari in the case of National ATM Council, Inc. v. Visa Inc. The central issue raised in the petition was the depth of analysis a court must conduct at the...more

Fisher Phillips

New ERISA Class Actions Zero in on Group Health Plan Fiduciary Obligations: 10 Best Practices for Employers

Fisher Phillips on

ERISA class action lawsuits against retirement plan fiduciaries have become commonplace over the last few decades, usually alleging that imprudent processes and lack of oversight led to excessive fees for investment options,...more

Proskauer - Employee Benefits & Executive...

California District Court Denies Motion to Dismiss 401(k) Excessive Fee and Underperformance Claims

A California district court recently denied a motion to dismiss claims that the fiduciaries of a 401(k) plan breached their ERISA fiduciary duties of prudence and loyalty by selecting underperforming, high-cost investments...more

Davis Wright Tremaine LLP

Stay ADvised: 2024, Issue 4

Bissel Takes a Bite Out of SharkNinja's "#1 Brand" Claim at NAD - What makes a brand No. 1? Is it sales in dollars or units sold? That was the question in a recent challenge brought by Bissel Homecare, Inc. (Bissel), the...more

Cornerstone Research

What Is Partitioned Pricing, the Subject of Recent Regulatory and Litigation Scrutiny?

Cornerstone Research on

In recent months, various groups—including the Federal Trade Commission (FTC) and other high-level government regulators—have raised questions about the appropriateness of “add on” charges paid by consumers who are buying...more

Holland & Knight LLP

Tenth Circuit Dismisses Claims Related to High-Cost Funds, High Recordkeeping Fees

Holland & Knight LLP on

The U.S. Court of Appeals for the Tenth Circuit issued its decision in Matney v. Barrick Gold of North America, et al. on Sept. 6, 2023, finding that participants in an employer-sponsored defined contribution retirement plan...more

Lathrop GPM

Illinois Appellate Court Upholds Dismissal of Vicarious Liability Claim Against Franchisor Due to Franchisor’s Lack of Day-to-Day...

Lathrop GPM on

An appellate court in Illinois upheld a trial court’s dismissal of claims that franchisor was vicariously liable for the alleged actions of its franchisees. Shavers v. The UPS Store, Inc., 2023 IL App (1st) 221407-U (Ill....more

Dorsey & Whitney LLP

The Eighth Circuit’s “Meaningful Benchmark” Requirement for 401(k) “Excessive Fee” Lawsuits Continues to Generate Dismissals

Dorsey & Whitney LLP on

On August 21, 2023, the U.S. District Court for the District of Minnesota largely dismissed—for a second time—a putative ERISA class action challenging “excessive” fees and “poor” performance in a 401(k) plan. Fritton v....more

McGlinchey Stafford

The Fuss About Junk Fees, Pt. 2: Recent Regulatory, Enforcement, and Private Actions Challenging Fees

McGlinchey Stafford on

Part Two of our series on junk fees highlights recent regulatory, enforcement, and private action trends. Not only has the CFPB and FTC issued proposed rulemaking and guidance warnings against certain types of fee practices,...more

Proskauer - Employee Benefits & Executive...

Northwestern University’s Alternative Explanations Not Strong Enough To Defeat ERISA Excessive Fee Claims

On remand from the U.S. Supreme Court, the Seventh Circuit issued its opinion in Hughes v. Northwestern University, concluding that participants in two Northwestern 403(b) plans plausibly pled fiduciary-breach claims based on...more

Dorsey & Whitney LLP

Excessive Recordkeeping Fee Claim Squeaks by a Motion to Dismiss

Dorsey & Whitney LLP on

A federal court in Wisconsin recently allowed a putative ERISA class action in Lucero v. Credit Union Ret. Plan Ass’n to proceed to discovery on the claim that a 401(k) plan paid excessive recordkeeping fees. This decision...more

Proskauer - Employee Benefits & Executive...

District Courts Reach Opposite Conclusions on 401(k) Excessive Fee Claims

A district court in the Southern District of Ohio and one in the Western District of Wisconsin reached opposite conclusions on motions to dismiss claims for fiduciary breach based on allegations that recordkeeping fees were...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Nestle on verge of winning most of their case

A U.S. District Court federal magistrate judge in the Eastern District of Wisconsin mostly sided with Nestlé USA Inc by recommending the dismissal. of a class action lawsuit alleging fiduciary negligence and self-dealing in...more

Proskauer - Employee Benefits & Executive...

Two District Courts in the Seventh Circuit Grapple with Pleading Standards in ERISA Excessive Fee Cases

In Baumeister v. Exelon, No. 21-cv-6505, 2022 U.S. Dist. LEXIS 176711 (N.D. Ill. Sep. 22, 2022) and Coyer v. Univar Sols. USA Inc., No. 22-cv-362, 2022 U.S. Dist. LEXIS 175972 (N.D. Ill. Sep. 28, 2022), two Illinois district...more

Holland & Knight LLP

Circuit Courts of Appeal Uphold Dismissal of 401(k) Fee Challenges Post-Hughes

Holland & Knight LLP on

Following the U.S. Supreme Court's decision in Hughes v. Northwestern University, courts around the country continue to articulate the pleading requirements for a breach of duty of prudence claim under the Employee Retirement...more

Holland & Knight LLP

Low-Cost Index Funds in the Crosshairs of New 401(k) Lawsuits

Holland & Knight LLP on

Since late July, at least 10 lawsuits have been filed against large 401(k) plan sponsors that offer certain BlackRock Inc. target-date funds (TDF) among their investment options. In an unexpected pivot away from the 401(k)...more

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