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U.S. Court of Appeals for the First Circuit

Case Status

Decided

Docket Number

Oral Argument Date

December 04, 2017

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Case Updates

First Circuit affirms dismissal of ERISA class action lawsuit against retirement plan offering stable value fund as an investment option

March 23, 2018

Click here to view the opinion.

U.S. Chamber urges First Circuit to reject hindsight-based theory of ERISA fiduciary liability

October 12, 2017

In recent years, plaintiffs have filed a number of class action lawsuits alleging that investment managers and plan sponsors breached their fiduciary duties under ERISA by imprudently managing a stable value fund. The Chamber and American Benefits Council filed an amicus brief in a First Circuit appeal in which plaintiffs claimed that defendants managed a stable value fund too conservatively. The Chamber’s brief explained that courts should not presume imprudence when a fund does not outperform industry average returns or conform to industry average asset allocations—such an approach would decrease the range of strategies offered by investment managers and reduce the choices available to plan sponsors and consumers.

Evan A. Young and Shane Pennington of Baker Botts L.L.P. served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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