Second Circuit Deloitte Case Sets Clear 401(k) Pleading Standard

An appeals court decision dismissing fiduciary breach claims workers brought against Deloitte LLP sets one of the clearest standards yet for comparing the cost of workplace 401(k)s, paving a new way for employers to defend against lawsuits alleging excessive fees.

The US Court of Appeals for the Second Circuit on Dec. 10 affirmed a lower court’s dismissal and denial of leave to file an amended complaint. The appeals court ruled workers alleging they’re charged too much for plan administration costs must demonstrate clear, “apples-to-apples” comparisons to other plans.

“This decision demonstrates mainly that you can’t just compare cost in a ...