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Plan Sponsors Beware: The U.S. Supreme Court Just Eased Requirements to File ERISA Prohibited Transaction Suits
Ropes & Gray LLP 
May 5, 2025 "Under Section 406 of ERISA, every payment that an ERISA-covered plan provides to a service provider is automatically a prohibited transaction. In order to pay service providers, such as recordkeepers, a plan would normally rely on Section 408 of ERISA ... Under Cornell, plaintiffs can bring a claim based solely on the fact that the plan is paying its service providers, despite the exemption for retirement plan recordkeeping, investment advisor and other standard plan-related service providers." [Cunningham v. Cornell Univ., No. 23-1007 (S.Ct. Apr. 17, 2025)] MORE >> |
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