As has been discussed and written aboutextensively, the U.S. Supreme Court lowered the pleading standard for claims alleging violations of ERISA's prohibited transaction rules.Cunninghamv. Cornell University, 604 U.S. 693 (2025). A recent decision addressing a motion to dismiss prohibited transaction claims serves as a good reminder to plan sponsors and fiduciaries not to overlook procedural safeguards when defending against such claims, including whether plaintiffs lack Article III constitutional standing.Peeler v. Bayada Home Health Care, Inc., 2026 WL 208630 (W.D.N.C. Jan. 27, 2026).
Several participants in the Bayada Home Health Care, Inc. 401(k) plan alleged that the plan fiduciaries: (i) violated ERISA's prohibited transaction rules by engaging third-party investment advisors and paying too much for those contracts; and (ii) breached their duties of prudence and loyalty by selecting and retaining certain investments that were too expensive and underperformed, and by paying too much for investment advisory and recordkeeping fees.
Defendants moved to dismiss the complaint for lack of constitutional standing and for failure to state a claim for relief. Addressing first the threshold issue of whether the plaintiffs had standing, the court observed that the plaintiffs' only allegations related to the investment advisory services were that they were unnecessary and the advisors' fees were excessive. The court determined that such allegations were speculative and provided...
Kenneth Scott Miller, 48, is charged with a felony count of making a false report to law enforcement. He was released from the Escambia County Jail on a $500 bond. According to an Escambia County ...