A federal appeals court ruled that class-action challenges cannot be used against defined contribution plans in ERISA lawsuits, undercutting a common tactic in fiduciary-breach cases.
That ruling targets the economics of these suits because plaintiffs have often relied on class treatment to aggregate claims and make litigation financially viable.
Defense lawyers said the decision weakens incentives to bring many ERISA fiduciary-breach lawsuits, potentially narrowing one of the most active avenues for retirement-plan litigation.
The decision could reshape how participants challenge plan management, pushing future disputes over defined contribution plans toward more individualized claims.