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Supreme Court Says 401k Participants Can Sue

Discussion in 'Political Discussion' started by weswelker#83, Feb 20, 2008.

  1. weswelker#83

    weswelker#83 In the Starting Line-Up

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    WASHINGTON (AP) — The Supreme Court says individual participants in the most common type of retirement plan can sue under a pension protection law to recover their losses.

    In a unanimous ruling, the justices are allowing participants in 401(k) retirement plans to sue. The decision has implications for 50 million workers with $2.7 trillion invested in such plans.

    James LaRue of Southlake, Texas, says the value of his stock market holdings plunged $150,000 when administrators at his 401(k) retirement plan failed to follow his instructions to switch to safer investments.

    http://ap.google.com/article/ALeqM5h0nymDcTMgLYZmVWKEYlInvyt43QD8UU4GDG0





    It's getting hot in here
     
  2. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    It didn't give much detail. However I am sure that it is limited to those who had been told they would be invested in one thing and weren't. Whether that be a sector or a risk degree. Every Tom, Dick and Harry who isn't happy with their return but who were invested in what they had chosen to be will get tossed out quickly.
     
  3. QuiGon

    QuiGon Banned

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    Anytime a client tells a fund manager or a financial advisor to do something, and the advisor doesn't do it, I think that advisor should be liable for triple damages.
     
  4. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Agreed - but I think a lot of people will be disappointed to find that it would take something like that to have a viable lawsuit here; a lot of people will think "my 401K is down, I get to sue for millions".

    :bricks:
     
  5. QuiGon

    QuiGon Banned

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    Yes, anyone that just read a headline and didn't read or understand the article would probably think that... like those Enron workers who had 100% of their savings invested in that one single stock, then wanted the government to compensate them for their losses when it went belly up.
     

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