Ex-Employees Can Sue Retirement Plans: 4th Circuit

Law360, New York (June 16, 2008, 12:00 AM EDT) -- A federal appellate court has ruled that employees have statutory and constitutional standing to sue their former employers for breach of fiduciary duty relating to their defined-contribution retirement benefit plans, even after they have left the company and withdrawn their money from their accounts.

On Monday, the U.S. Court of Appeals for the Fourth Circuit overturned a lower court’s dismissal of three cases, which had been combined before the appellate court, and remanded them for future litigation.

The cases were brought by former employees of various...
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