High Court Clears Way For Individual Pension Suits

Law360, New York (February 20, 2008, 12:00 AM EST) -- The U.S. Supreme Court has ruled that individual participants in 401(k) pension plans can sue for losses to their personal retirement savings in a decision some say could lead to a flood of suits under the Employee Retirement Income Security Act and discourage employers from sponsoring plans.

A high court majority ruled Wednesday that plan participant James LaRue, who sued former employer DeWolff, Boberg & Associates Inc. for failing to follow instructions in investing his savings, could sue under ERISA for breaches of fiduciary duties to...
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