Forum
U.S. Court of Appeals for the Second Circuit
Case Status
Decided
Docket Number
08-1534-cv (CON)
Case Updates
Second Circuit addresses ERISA statute of limitations
May 06, 2009
The Second Circuit affirmed dismissal of a complaint arising under ERISA that had alleged that the defendants breached their fiduciary duties by failing to diversify the investments of retirement funds, and by selecting funds with excessive fees. According to the court, the plaintiffs never alleged any facts to show inadequate diversification or that the fees were excessive in relation to the services rendered.
U.S. Chamber files amicus brief
July 24, 2008
NCLC urged the Second Circuit to affirm a lower court ruling barring an ERISA class action based on statute of limitations. In this case, 401(k) plan participants alleged that, by offering single equity funds, the plan fiduciary and trustee violated ERISA’s diversification requirements, and caused them to lose millions of dollars. The lower court ruled that all of the investments in the single equity funds were made more than three years before filing the lawsuit, and plan documents were provided to participants at that time. Because the participants had knowledge of a transaction they claimed was an inherent breach, the court held that this claim was barred by the three-year limitations period.