A wider net in 401(k) litigation

A recent article in InvestmentNews highlighted recent 401(k) litigation brought against small plans. While this type of litigation was traditionally brought against fiduciaries of large plans, plaintiffs’ firms have begun to target plans as small as $9 million. These suits are typically settled, rather than decided on the merits, but the risk of litigation has instilled fear and sensitivity in plan sponsors. One of the best defenses is a prudent process.