Fiduciary Rule Case in Texas Federal Court Finally Closed

The federal case that brought down an Obama-era rule that would have required investment advisers to put the interest of retirement savers above their own is finally closed.

In light of the appeals court ruling that struck down the controversial rule earlier this year, and the parties’ intent to not seek further relief, Judge Barbara M.G. Lynn of the U.S. District Court for the Northern District of Texas ordered July 13 to close the case administratively.

The final closure comes two weeks after Lynn issued an order asking “any party seeking further relief in this action” to notify the court of that intent by July 12. In her order, Lynn didn’t clarify the meaning of “further relief.”

Speculation grew that three states—California, New York, and Oregon—and the AARP, which sought to defend the fiduciary rule in the U.S. Court of Appeals for the Fifth Circuit after the Labor Department decided not to seek review, could file a request for further relief in Texas. They didn’t.

Last week, the industry groups that brought the lawsuit challenging the rule said they wouldn’t seek further relief in this action.

Lynn’s order will be received with interest by people following another challenge to the controversial rule in federal court in Minnesota. Earlier this month, the DOL and Thrivent Financial for Lutherans told a federal judge to continue the stay of their case, which has been on hold since last year when the nonprofit got a court order barring the DOL from enforcing the rule’s anti-arbitration provision against it.

The case is U.S. Chamber of Commerce v. DOL, N.D. Tex., No. 3:16-cv-01476-M, order directing clerk to administratively close action 7/13/18.