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In a 2-1 split decision, the US Court of Appeals for the Second Circuit reversed a lower court’s decision that an arbitration agreement signed by an employee as part of his employment required that he arbitrate any fiduciary breach claims challenging the investment options and fees in his employer’s 401(k) plan.
On March 4, 2021, the Second Circuit issued an opinion in
Cooper v. DST Systems, Inc., et al., reversing a lower court’s decision that the arbitration agreement signed by an employee as part of his employment required arbitration of the employee’s breach of fiduciary duty claims challenging the investment options in his 401(k) plan.