Clifford Chance

Investor Choice Is Not Enough- Supreme Court Expands Risks for ERISA Fiduciaries

February 28, 2022

In January 2022, the Supreme Court in Hughes v. Northwestern University, et al., unanimously held that an ERISA plan fiduciary does not satisfy the ERISA prudence requirements by just including some prudent investment options in an employee retirement plan. That holding rejects investor choice as a “categorical” defense to claims of imprudence.  For that reason, the Hughes decision may make it harder to dismiss private litigation by classes of plan participants.

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