Partial Victories To Two Universities In Their Motions To Dismiss Code Section 403(B) Fee Litigation

Summary

Multiple large, class action lawsuits have been filed against prominent higher education institutions claiming fiduciary breaches under their Code Section 403(b) plans as a result of insufficient oversight of plan investments, which allegedly caused excessive fees to be paid by participants. Last week, district courts in Georgia and North Carolina, respectively, ruled on defendants' motions under Henderson v. Emory University and Clark v. Duke University. Although the defendants in these cases had some success in eliminating certain causes of action, other causes of action involving the payment of excessive fees and use of multiple record-keepers will continue through litigation.