LaRue v. DeWolff, Boberg & Associates, Inc., No. 06-856 (U.S. 2008)
Articles Discussing Case:
Ruling Allows Individuals To Recover Individual 401(k) Losses.
Ogletree Deakins • April 01, 2008
The U.S. Supreme Court recently disagreed with the Fourth Circuit Court of Appeals' decision that a participant in a 401(k) plan is prohibited from using Section 502(a)(2) of the Employee Retirement Income Security Act (ERISA) to recover losses allegedly caused by his employer's failure to carry out his investment instructions. "Although [Section] 502(a)(2) does not provide a remedy for individual injuries distinct from plan injuries," the majority wrote, "that provision does authorize recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account."
Supreme Court Allows Individual Fiduciary Claim for 401(k) Losses.
Vedder Price • February 27, 2008
The Supreme Court has unanimously ruled (although in three separate opinions) that a participant in a 401(k) plan may sue for recovery arising from a breach of fi duciary duty, reversing lower court rulings that dismissed the participant’s lawsuit.
Supreme Court Permits Plan Participants to Sue for Fiduciary Breach.
Ford & Harrison LLP • February 21, 2008
The U.S. Supreme Court issued a decision today (February 20, 2008) that will allow individual participants to sue for fiduciary breaches related to their 401(k) plans. In a unanimous ruling in LaRue v. DeWolff, Boberg & Associates, Inc., No. 06-856, the Supreme Court held that while ERISA §502(a)(2) does not allow a remedy for individual injuries apart from plan injuries, it does permit individuals to recover for harm to their plan assets due to a breach of fiduciary duty.
Supreme Court Ruling Allows Individuals to Recover Individual 401(k) Account Losses.
Ogletree Deakins • February 21, 2008
Today, the U.S. Supreme issued its ruling in LaRue v. DeWolff, Boberg & Associates, Inc. The high court disagreed with the Fourth Circuit Court of Appeals' decision that a participant in a 401(k) plan is prohibited from using Section 502(a)(2) of the Employee Retirement Income Security Act (ERISA) to recover losses allegedly caused by his employer's failure to carry out his investment instructions. "Although [Section] 502(a)(2) does not provide a remedy for individual injuries distinct from plan injuries," the majority wrote, "that provision does authorize recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account."
