Kutak Rock attorney Ruth Marcott was featured in a recent Law360 article examining the implications of the U.S. Court of Appeals for the Eighth Circuit’s decision in litigation involving alleged misuse of 401(k) plan forfeitures.

The article, “8th Circ. Wells Fargo Ruling Focuses on Establishing Injury,” explores the Eighth Circuit’s May 12 ruling affirming dismissal of a proposed class action against Wells Fargo based on a lack of standing, while allowing the plaintiff an opportunity to amend  and refile the complaint. Ruth, who frequently represents employer-side defendants in ERISA matters, noted that the decision is unlikely to stop similar claims from being filed but could influence how plaintiffs structure future complaints.

“This Eighth Circuit case isn’t going to make these cases disappear,” Ruth told Law360.

She further explained that the decision places greater emphasis on demonstrating individualized harm observing that plaintiffs and practitioners will need to more closely evaluate “what’s the individual injury, how can we calculate that, [and] what are the plan terms?”

Ruth also highlighted the significance of the appellate court’s focus on standing and individualized injury allegations, noting that future developments, including appeals pending in other federal circuits, will continue shaping litigation involving retirement plan forfeitures.

The Law360 article also discussed several pending appellate matters involving ERISA forfeiture claims and examined how courts across jurisdictions may approach standing requirements and alleged plan losses moving forward.

Full article here. (Subscription Required)

Ruth has extensive litigation and other dispute-related experience and has litigated numerous ERISA fiduciary cases, including those asserting prohibited transaction violations, excessive fees or other alleged failures in the duties of care and loyalty. She has tried, arbitrated and litigated withdrawal liability under the MPPAA, including those challenging actuarial assumptions. She also has litigated health plan and health law issues, including PBM contracting issues, coverage issues, 340B ceiling prices and false claims act issues.