Direct Action Theory: Should a Single 401(k) Participant Be Allowed to Sue on Behalf of All Participants Without Certifying a Class Action?, Benefits Law Journal, Vol. 24, No. 4Published on: 12/09/2011
In the past decade, it has become increasingly common for 401(k) plan participants to sue plan fiduciaries for alleged mismanagement of plan assets. For a variety of reasons, participants have generally filed these actions under ERISA Section 1132(a)(2) to recover alleged losses to their plan. Initially, plaintiffs claimed that fiduciaries should not have allowed participants to invest in company stock funds. More recently they have challenged that plan investment management or administrative fees are excessive and/or that fiduciaries selected imprudent investment options. Almost uniformly, participants have sought.