Lawsuit Brought by Schlichter Bogard on Behalf of New York University Retirement Plan Participants is Headed Back to Court
The first ERISA class action lawsuit over 403(b) fees to go to trial will once again be heard in the U.S. District Court for the Southern District of New York, ruled the U.S. Court of Appeals for the Second Circuit on August 16.
Filed in 2016 by Schlichter Bogard & Denton on behalf of New York University (“NYU”) and NYU School of Medicine retirement plan participants, the case—styled Sacerdote et al v. New York University— alleges that NYU’s 403(b) plan charged excessive fees, significantly depleting employees’ retirement savings. The trial court initially ruled in NYU’s favor regarding certain claims, dismissing the balance of the allegations.
However, as reported by InvestmentNews, the U.S. Court of Appeals for the Second Circuit on Monday partially reversed the trial court’s ruling. InvestmentNews further reported that this marks “a victory for the law firm Schlichter Bogard & Denton, which several years ago led a legal crusade against 403(b) plan sponsors, suing numerous elite colleges and universities on the grounds of excessive fees and other fiduciary breaches.” Notably, the appellate court additionally “found that plaintiffs were wrongly denied leave to amend their complaint to name additional defendants.”
“We are pleased that this case on behalf of NYU employees and retirees will now go back to trial,” said managing partner Jerome Schlichter. “We look forward to continuing to present the facts regarding how NYU’s plan was handled, and the way these decisions affected participants’ lives and livelihoods.”
We are proud to be pioneers in retirement plan litigation. Visit our website to learn more about other high-impact cases we’ve handled. For additional information about Schlichter Bogard & Denton’s Retirement practice, please contact us at 800-873-5297 or via email at email@example.com.