Cornell Beats Retirement Plan Class Action in Second Circuit

Cornell University defeated an appeal challenging the investments and recordkeeping fees in its workers’ retirement plan when the Second Circuit on Tuesday affirmed a decision granting the school summary judgment over most claims in the 28,000-person class action.

In rejecting the Cornell workers’ claims under the Employee Retirement Income Security Act’s prohibited transaction rules, the US Court of Appeals for the Second Circuit took a position on a circuit split and held for the first time that a prohibited transaction claim based on money paid to a retirement plan service provider must include allegations that the services were unnecessary or ...