Groom principal Will Delany was quoted in American Banker’s, “Supreme Court Weighs New Hurdle for 401(k) Lawsuits,” discussing the potential implications of Anderson v. Intel Corp. Investment Policy Committee. The case examines whether plaintiffs alleging imprudent investment decisions under ERISA must identify a meaningful benchmark to support claims of underperformance and how closely that benchmark must align with the challenged investment.
Delany emphasized the importance of considering an investment’s objectives, risks, and return characteristics when evaluating performance. “The metaphor we hear a lot is: It needs to be apples to apples. But does it need to be the same species of apple or not?” he explained.
The Supreme Court’s decision, expected in 2027, could provide further guidance on the standards for bringing ERISA investment underperformance claims and have broader implications for retirement plan fiduciaries.
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