401(k) Class Actions

Sidley has defended employers, plan sponsors, trustees, administrators and other parties in claims of breach of fiduciary duty under ERISA, including claims challenging conversions of common trust funds to mutual funds and prohibited transactions.

401(k) Administrative Fee Class Actions

Sidley has extensive knowledge of the issues involved in the recent wave of class action lawsuits filed against plan sponsors, company board members, record-keepers and other defendants dealing with the administrative fees paid to 401(k) plan service providers. The lawsuits allege breach of fiduciary duty claims and challenge the adequacy of disclosures about revenue sharing arrangements between 401(k) service providers and mutual fund companies, as well as the amount of the fees paid in connection with mutual fund investments. Sidley is currently representing a plan sponsor as well as a plan service provider in 401(k) fee cases.

401(k) Investment Class Actions

Sidley is experienced in defending claims that challenge the prudence of company stock as an investment option (also known as “stock drop” cases). We are representing corporations and officers and directors against claims that 401(k) plans were required under ERISA to diversify or preclude investment in company stock funds. In addition, Sidley provides advice regarding fiduciary practices and plan administration, the design of 401(k) plans and the contents of summary plan descriptions and other participant communications.