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Rejecting 401(k) Case Risks Skewing Investments, Justices Told

Dec. 19, 2019, 10:31 AM

The U.S. Supreme Court is being asked to buck the federal government and review a lower court ruling some attorneys say endorsed one type of investment over another in 401(k) retirement plans.

The language was part of a U.S. Court of Appeals for the First Circuit decision that deepened the divide among appellate courts about which party must prove or disprove that a mismanagement of retirement funds caused plan losses. If the ruling is left standing, it could influence the investment decisions of plan managers and leave an important question unanswered in retirement plan litigation, attorneys said.

In a dispute ...