Supreme Court allows 401(k) participants to sue for loss in value
By Dave Tate, CPA, Esq. - In a decision that most likely will generate significant future litigation, the U.S. Supreme Court in LaRue v. DeWolff, Boberg & Associates (see Opinion link: http://www.supremecourtus.gov/opinions/07pdf/06-856.pdf ) has held that an individual participate who has a 401(k) account has standing to personally bring suit against the plan administrator under ERISA for loss in account value. The Court differentiated the circumstance where a defined benefit plan is involved, where a loss is to the entire plan, compared to a 401(k) account where the individual has a separate account and is individually involved in providing investment instructions to the plan administrator.
Dave Tate, CPA, Esq.