Generac 401(k) Suit Sees First Ripple Effects From 7th Cir. Case

Generac Power Systems Inc. and a former employee challenging the company’s retirement plan fees must explain how the Seventh Circuit’s recent decision reviving similar claims against Northwestern University affects their dispute.

A Wisconsin federal judge on Tuesday ordered the parties to file five-page briefs on the implications of the US Court of Appeals for the Seventh Circuit’s March decision in Hughes v. Northwestern Univ. The appeals court used the decision to articulate a pleading standard for claims of fiduciary breach tied to retirement plan fees and investment options.

According to the appeals court, a breach claim will fail when there’s ...