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Judge Extends Employment Arbitration Requirement to Claims Against Advisor
National Association of Plan Advisors [NAPA] Aug. 18, 2017
"A federal court has extended the reach of an employment arbitration agreement to require a participant to first arbitrate, rather than sue a plan's investment advisor.... [The court] drew a distinction between the arbitration clause in an employer handbook and the 401(k)'s summary plan description. The latter, which advised participants that they may file suit in federal court, didn't undermine a finding that in this case the participant's claims were related to employment, and thus subject to arbitration." [Cooper v. Ruane Cunniff & Goldfarb Inc., No. 16-1900 (S.D.N.Y. Aug. 15, 2017)]
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