Lawsuits against plan providers and sponsors are only allegations at first

Ary Rosenbaum
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

It seems like every week, there is another major lawsuit against a plan sponsor and one of their service providers.

Allegations of impropriety are just allegations until decided by a trier of fact of whether they are substantiated or not. Just because a plan sponsor and their service provider is being sued, doesn’t mean they did anything wrong.

ERISA litigators have to eat too and sometimes they pick cases that aren’t going to put food on the table. I’ve seen too many lawsuits against some big-time plan providers that I know will end up going nowhere because the service provider is alleged to have done something wrong is being sued because the ERISA litigator is considering that service provider is a fiduciary. Alleging that a service provider is a fiduciary is one thing, proving that is a lot harder.

ERISA litigators like to go fishing and they like big fishes like Fidelity and Vanguard. Whether they catch them or not is a whole other story.

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.

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