Defined Benefit Plan Participants Have Standing To Pursue Fiduciary Breach Claims

A federal district court in Minnesota found that participants in a defined benefit pension plan had standing to assert claims that defendants breached their fiduciary duties by, among other things, shifting to an equities-only investment strategy that resulted in the plan becoming significantly underfunded and thereby increasing the risk of default. In so ruling, the court determined that even though U.S. Bancorp was capable of meeting its minimum funding obligations, plaintiffs plausibly alleged that plan assets became insufficient to meet its liabilities, and this increased risk of default represented a personal injury sufficient to establish standing. The court nevertheless concluded that plaintiffs' claim was barred by ERISA section 413's six-year...