Supreme Court Stirs Fiduciary Unrest

Can a participant in your 401(k) plan sue you for failing to follow the participant’s investment directions?

In February, the United States Supreme Court decided an ERISA case that has raised concerns among fiduciaries of defined contribution plans, such as 401(k) plans. In Larue v. DeWolff, Boberg & Associates, Inc., the Court found that a participant in a defined contribution plan may bring a suit for a breach of fiduciary duty against a fiduciary of the plan even if any recovery from the fiduciary will be added only to the participant’s account under the plan, and will not benefit other participants under the plan.