The US Supreme Court is considering a case that could allow employees to file lawsuits involving the mishandling of their retirement funds. The issue involves the limits placed on lawsuits under the Employee Retirement Income Security Act (ERISA), which regulates private sector retirement plans and protects pension fund money from misappropriation.
James LaRue, a former employee at DeWolff Boberb & Associates, a management consulting company in Dallas, Texas, says that he lost $150,000 because the company did not follow his instructions on how he wanted them to invest his retirement funds.
LaRue claims that he asked DeWolff Boberb & Associates to change the way his money was allocated in mutual funds available through his 401 (k) plan. They did not make the changes he requested.
LaRue filed his lawsuit in 2004 after failing to reach a settlement with DeWolff Boberb & Associates. A trial judge threw out the lawsuit and The 4th US Circuit Court of Appeals also barred the lawsuit saying that ERISA did not allow it.
Some 42 million American workers contribute to 401(k) retirement plans, of which there are some 250,000. The amount of money that people who invest in 401k plans end up with often depends on the success of their chosen investments.
The Supreme Court’s decision could redefine the rights of participants involved in contribution retirement programs, which includes employee stock ownerships, 401(k)s, and profit sharing plans.
If you are an investor who has lost money because of the misconduct of someone in the securities industry, contact Shepherd Smith and Edwards immediately. We have helped thousands of US investors recover their losses.
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