October 23, 2008
Crisis Likely To Spark New Strategies in ERISA Actions
In an article for Law360, Jacqueline Ball writes, "As the financial crisis has played havoc with millions of Americans' ERISA-governed retirement plans, those dramatic losses may well inspire plan participants, and their attorneys, to push the boundaries of typical Employee Retirement Income Security Act litigation strategies" ("Crisis Likely to Spark New Strategies in ERISA Actions," Law360, 10/23/08).
Ms. Ball consulted Dorsey Partner Steve Lucke on the matter. She stated that experts have predicted plan fiduciaries will likely take a role in the litigation process by bringing law suits against a plan's investment managers.
"I think when returns are lower, fiduciaries are going to be examining why that is. And if it appears that the people they entrust to handle those matters haven't followed those contracts, they'll seek remedies," said Lucke.