Sullivan & Cromwell LLP
04/21/2025 | Press release | Distributed by Public on 04/21/2025 19:02
Supreme Court Lowers Bar for ERISA Prohibited-Transactions Claims
April 21, 2025
The Supreme Court Held that Plaintiffs Alleging that an ERISA Fiduciary Engaged in a Prohibited Transaction Need Not Address Statutory Exemptions that May Absolve the Fiduciary of Liability
Last week, the Supreme Court issued a significant ERISA decision that makes it easier for plaintiffs to plead prohibited-transaction claims. Following the Court's decisions, defendants should consider alternative paths to dismissing ERISA complaints challenging transactions that are clearly permitted by federal law.