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Supreme Court Lowers Pleading Standard for ERISA Prohibited Transaction Claims
Eversheds Sutherland 
Apr. 29, 2025 "[P]laintiffs will likely test the courts, leveraging the advantages this decision has given them and the inherent inconsistency in applying these 'tools.' Plan sponsors should assess their potential risks and consider mitigation efforts, including strategies they would employ in the event of a claim. For example, plan sponsors could consider paying plan expenses from corporate assets rather than plan assets, which would eliminate the possibility of a section 406(a)(1)(C) prohibited transaction." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)] MORE >> |
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