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Suing Your 401(k) sponsor

The New York Times recently reported in a story titled “Top Court Allows Suit Over 401(k)” that the supreme court ruled on Wednesday allowing an individual to proceed with his lawsuit against his employer who administered the company’s 401(k). His claim was that they ignored his instructions to shift his investment mix and that he lost $150K due to his instructions being ignored. I received many emails asking about this ruling, asking if anyone can sue over the current losses. The suit was not about the losses of the market, but were specific to the fiduciary responsibility of a 401(k) sponsor to follow instructions of the participants. Most of us invested in stocks are down this year, but that’s not to suggest that any class actions suits will follow, we are just subject to the volatility of the current market.

JOE

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