Forced Arbitration Fight Gets Boost From Retirement Plan Ruling

A recent appeals court ruling could bolster the ongoing fight against forced arbitration in retirement plans, a tactic employers are increasingly using to avoid class actions that challenge how their plans are run.

Supporters of mandatory individual arbitration clauses say they help employers solve disputes faster and spend more money on benefits instead of legal fees. Opponents say they prevent a retirement plan participant from litigating on behalf of everyone, or from banding together in court with other plan members, to recoup funds that were lost due to plan mismanagement.

A Second Circuit ruling against the use of such agreements ...