U.S. Supreme Court
Supreme Court Likely to Allow Individual’s 401(k) Suit
Posted Nov 27, 2007 7:28 AM CST
By Debra Cassens Weiss
The U.S. Supreme Court appears likely to allow a lawsuit against the administrators of a 401(k) plan accused of causing an individual’s $150,000 loss, the New York Times reports.
The issue in LaRue v. DeWolff, Boberg & Associates Inc. is whether the Employee Retirement Income Security Act allows suits for individual losses rather than improper management of the fund itself. The case was argued yesterday.
The plaintiff, James LaRue, claims he lost the money because plan administrators twice failed to follow his direction to move the money to safer investments.
The court’s decision could also affect lawsuits for losses in individual company stocks, the Wall Street Journal reports (sub. req.).
The court posted the oral argument transcript (PDF).