Courts Divide on Fiduciary Status of 401(k) Plan Service Providers

As the 401(k) fee lawsuits progress, the federal district courts continue to grapple with the issue of whether the defendant service provider qualifies as an ERISA fiduciary.  The courts were particularly busy last week, issuing two decisions on this point.  In Charters v. John Hancock Life Insurance Company, the court held that John Hancock qualifies an ERISA fiduciary and allowed the case to proceed on the issue of whether John Hancock breached its fiduciary duties.  In contrast, in Columbia Air Services, Inc. v. Fidelity Management Trust Company, the court granted Fidelity's motion to dismiss, concluding that the plaintiff failed to allege facts sufficient to demonstrate that Fidelity may qualify as an ERISA fiduciary.  Copies of the Charters and Columbia Air decisions, as well as our summary of the decisions, are attached.  

Groom Law Group is involved in several of these cases, and we're continuing to monitor developments in the area.

View the Charter Decision

View the Air Columbia Decision

View the Summary