Stephanie Gutwein Comments on Supreme Court ERISA Decision With Pensions & Investments

Pensions & Investments turned to litigation partner Stephanie Gutwein for insight on the Supreme Court's unanimous decision in Cunningham et al. vs. Cornell University et al. which mandates that plan fiduciaries must prove their transactions with third parties qualify for ERISA exemptions. This ruling is likely to increase lawsuits, raise retirement plan costs, and discourage innovation. Critics argue it burdens fiduciaries and prioritizes legal technicalities over practicalities, potentially harming participants.

Stephanie noted that while the justices “were trying to give the best answer given the statute,” the ruling may not sufficiently control meritless claims. She highlighted that the best defendants can do is tell judges “their response is consistent” with some suggestions in the justice’s opinion.