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Litigation Alert for 401(k) Plans

March 04, 2008

By Mark Poerio and Jamie Dvoretzky

Until recently, Supreme Court ERISA decisions have generally interpreted the statute narrowly when it came to granting relief for plan participants for alleged fiduciary breaches. A possible reversal in this trend occurred last week in LaRue v DeWolff, Boberg & Associates, Inc. (LaRue)  when the Court unanimously held that any participant in a 401(k) or other individual account plan (such as a profit sharing plan, money purchase pension plan, or ESOP) may sue plan fiduciaries in order to recover losses resulting from a fiduciary breach affecting solely the participants individual account in the plan.