The decision by the supreme court covers the some 50 million individuals who have invested in retirement plans and could open a flood gate of "fiduciary misconduct" lawsuits.
Wall Street is notriously dog eat dog and the culture says losing investors should never cry foul over losses. However, the new precedent does not apply directly to stock losses but to those who manage the funds. If claimants can prove misconduct or negligence (such as failing to follow specific directions of the client regarding investment choices) 401k holders may sue to recover losses.
Recent Comments