In recent years, there has been a proliferation of lawsuits alleging breach of fiduciary duty against sponsors of 401(k) plans and service providers to those plans under the Employee Retirement Income Security Act, or ERISA. In a recent case, the Eighth Circuit held that a plan service provider did not violate ERISA despite having the ability to unilaterally set a low interest rate on a proprietary investment it offered to the employer’s 401k plan, and then profited from participants who invested in it.
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Eighth Circ. Finds Financial Conflict of Interest Not Always Sufficient to Constitute Breach of ERISA Fiduciary Duty of Loyalty Posted on: October 20, 2022 In: Labor & Employment
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