Los Angeles partner Fred Reish was quoted in a Wall Street Journal article, titled, “High-Court Spotlight Put on 401(k) Plans.” The article discusses how the U.S. Supreme Court is scheduled to hear arguments that could have broad implications for the way people save for retirement.
The court will focus on a narrow issue concerning the statute of limitations in Tibble v Edison International, one of 13 class-action lawsuits filed in the past eight years that have accused U.S. companies of failing to act in the best interest of employees who participate in their 401(k) plans. A ruling against Edison could spark a barrage of lawsuits against companies over the way they set up and manage 401(k) retirement accounts and similar plans.
The string of lawsuits has put a spotlight on 401(k) plans, which had been largely ignored until now, Fred said. “They highlight the responsibility of plan sponsors not just to use reasonably priced investments, but to use their purchasing power to get the lowest-cost ones,” he said.
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