ST. LOUIS--(BUSINESS WIRE)--Schlichter, Bogard & Denton, a leading national law firm in St. Louis, announced today that in response to its petition for a writ of certiorari the U.S. Supreme Court has agreed to review the Ninth Circuit’s decision in Tibble v. Edison International, making it the first case involving excessive 401 (k) fees that will be heard by the Supreme Court.
“We are pleased that we will be able to present the case to the Supreme Court that 401(k) plan fiduciaries should not get a permanent free pass to keep known imprudent investments in a 401(k) plan,” said Jerry Schlichter. “There is a continuing duty by 401(k) fiduciaries to protect the retirement assets of workers.”
Tibble v. Edison International was filed on August 16, 2007 in the U.S. District Court for Central District of California claiming that Edison International breached its fiduciary duties under ERISA by offering plan participants retail share classes of mutual funds, which are more expensive than cheaper institutional share classes.
The case also alleges that participants were charged excessive fees and were led to believe that Edison International was paying administrative costs of the plan.
On March 21, 2013, the U.S. Court of Appeals for the Ninth Circuit determined that ERISA’s statute of limitations barred recovery for claims arising out of imprudent investments that had been in the plan more than six years.
The petition was filed on October 30, 2013. On August 19, 2014, the United States Solicitor General filed an amicus brief concluding that the petition should be granted.
“We contend that Edison International failed to act in the best interests of its employees by allowing excessive fees to be charged in their 401(k) plan,” added Jerry Schlichter. “The U.S. Solicitor General supported our position that this case affects the security and integrity of the U.S. retirement system, and we hope the Supreme Court will as well.”
About Schlichter, Bogard & Denton, LLP
Schlichter, Bogard & Denton, LLP, of St. Louis is a national law firm that represents individuals, including 401 (k) plan investors, whose plans suffer from excessive fees or imprudent investment options. Its attorneys are dedicated to helping employees and retirees secure the retirement benefits they deserve.
More information can be found at: www.uselaws.com or call (314) 621-6115.