House Republicans and retirement plan industry players renewed warnings of a surge of copy-cat lawsuits from the plaintiffs’ bar against fiduciaries, claiming during an oversight hearing they’re exploiting the judicial system for a quick payout.
Witnesses and members of the House Committee on Education & the Workforce debated Tuesday about allegedly abusive litigation tactics and frivolous lawsuits brought under the Employee Retirement Income Security Act.
Republicans and ERISA legal experts argued that plaintiffs’ firms are exploiting ERISA’s fee-shifting provision, which allows courts to award fees if the claiming party achieves “some degree of success.” These firms also use the threat ...