Just when law firms thought it was safe to fish in the freshly-chummed waters of ERISA Fiduciary lawsuits – large or small, one U.S. District Judge has capsized the boat! In this case, Plaintiff’s Counsel targeted Fees of the plan Recordkeeper and Investment functions of a Qualified Retirement Plan. Unfortunately for the Plaintiffs’ Counsel Team, consisting of Schlichter Bogard & Denton LLP and Schneider Wallace Cottrell Konecky LLP, Plaintiffs’ Counsel was found to have “recklessly proceeded to trial in violation of their duty to objectively analyze their case” according to Senior U.S. District Judge Christine M. Arguello.
Breathing a sigh of relief, as defendants are Empower as recordkeeper, and Great-West (and additional investment organizations) – from which plan participants could select their own retirement plan investments.
In this instance, Judge Arguello sanctioned the legal team (Schlichter Bogard & Denton and Schneider Wallace Cottrell Konecky LLP) with a fine that could reach $1.5 million.
For those wanting more on this and other retirement-related stories of the Week, proceed to 401k Real Talk. This topic can be found as the 3rd story of 5.