Case Updates
Fifth Circuit strikes down DOL's 2016 Fiduciary Rule
March 15, 2018
The U.S. Chamber of Commerce, Financial Services Institute, Financial Services Roundtable, Insured Retirement Institute, and Securities Industry and Financial Markets Association released the following statement on a decision in favor of the plaintiffs by the Fifth Circuit regarding a legal challenge to the Department of Labor’s fiduciary rule:
“The court has ruled on the side of America’s retirement savers, preserving access to affordable financial advice. Our organizations have long supported the development of a best interest standard of care and the Securities and Exchange Commission should now take the lead on a clear, consistent, and workable standard that does not limit choice for investors.”
The majority of a Fifth Circuit panel agreed with the Chamber that the DOL vastly exceeded its authority under ERISA and invalidated both its sweeping and novel definition of fiduciary and also the DOL’s related exemptive rules that were tied to the fiduciary rule. The ruling is a significant victory for financial-services companies, insurance companies, and individuals saving for retirement who otherwise would face reduced investment choice and access to advice and increased costs.
Motion for stay denied
April 05, 2017
Click here to view the order denying the Chamber's emergency motion for injunction pending appeal.
Chamber files motion for stay of DOL's Fiduciary Rule in the Fifth Circuit
March 21, 2017
Click here to view the motion.
Chamber files notice of appeal challenging DOL rule that prevents financial professionals from best serving retirement savers
February 24, 2017
The U.S. Chamber, Financial Services Institute, Financial Services Roundtable, Insured Retirement Institute, and Securities Industry and Financial Markets Association filed a notice of appeal to the Fifth Circuit challenging the Department of Labor’s (“DOL”) so-called “Fiduciary Rule.” Among other things, the Rule provides that exemptive relief will not be available if a financial firm or representative has an arbitration agreement with a customer that includes a class action waiver. The Chamber alleges that this prohibition of class waivers violates the FAA.
The co-plaintiffs issued the following statement on their notice of appeal:
“We remain confident in the merits and strength of our case and stand by our assertion that the Department of Labor exceeded its authority. We have long supported a best interest standard, adopted by the appropriate regulatory authority and across all individual investor accounts, not just retirement. This is a misguided rule that will harm retirement savers and financial services firms that provide needed assistance and options to their clients, including modest savers and small business employees. Further, the ‘private right of action’ mechanism creates unwarranted litigation risk for financial advisors, who will face the threat of meritless class action lawsuits challenging their every move.”
The five national co-plaintiffs filed the appeal in conjunction with the Greater Irving-Las Colinas Chamber of Commerce, Lake Houston Area Chamber of Commerce, Lubbock Chamber of Commerce, and Texas Association of Business.
Eugene Scalia, Jason J. Mendro, and Paul Blankenstein of Gibson, Dunn & Crutcher LLP served as counsel for the U.S. Chamber.
Case Documents
- Fiduciary Rule Notice of Appeal -- Chamber of Commerce v. U.S. Department of Labor (USDC - Northern District of Texas).pdf
- Chamber's Emergency Motion for an Injunction Pending Appeal -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- DOJ Response to Motion for Injunction Pending Appeal -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Reply in Support of Motion for Injunction Pending Appeal -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Order Denying Injunction Motion -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Chamber Appellants Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Chamber Appellants Record Excerpts -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- ACLI and NAIFA Appellants Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- IALC Appellants Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Thrivent Financial Amicus Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Washington Legal Foundation Amicus Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Public Citizen Amicus Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- AARP Amicus Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Financial Planning Coalition Amicus Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Appellees' Corrected Response Brief -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Reply Brief for Chamber of Commerce Appellants -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Reply Brief of ACLI and NAIFA Appellants -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Reply Brief of IALC Appellants -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Opinion -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit)
- States Motion to Intervene -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- AARP Motion to Intervene -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- AARP Proposed Petition for Rehearing -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Appellants' Opposition to Intervention Motions -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- AARP Reply Brief iso Motion for Leave to Intervene -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf
- Order Denying Motions to Intervene -- Chamber of Commerce v. U.S. Department of Labor (Fifth Circuit).pdf