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DST Arbitration Awards Tied to 401(k) Drop Undone Under New Law

Nov. 28, 2022, 5:33 PM

Court orders requiring DST Systems Inc. to pay millions of dollars to 177 participants in its retirement plan were undone on Monday, when the Eighth Circuit said intervening US Supreme Court authority “dramatically limited” federal jurisdiction to confirm arbitration awards.

The district court that confirmed dozens of arbitration awards favoring DST 401(k) plan participants lacks federal question jurisdiction over these awards based on the US Supreme Court’s March opinion in Badgerow v. Walters, the US Court of Appeals for the Eighth Circuit held. The appeals court vacated the orders and instructed the district court to consider, on a ...