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ERISA Litigation Update - July 2021 | Goodwin

ERISA Litigation Update - July 2021 | Goodwin
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Court Rules in Favor of Principal Life Insurance in ERISA Lawsuit

District court judge concludes conflict of interest alone is not a breach of fiduciary duties. A US district court has ruled in favor of Principal Life Insurance Company, which had been sued by retirement plan participants who accused the company of breaching its Employee Retirement Income Security Act (ERISA) fiduciary duties over an alleged conflict of interest. The lead plaintiff in the case was a California resident who worked for the Western Exterminator Company and was a participant in its employees’ 401(k) profit-sharing plan. The lawsuit focused on one of Principal’s products known as the Principal Fixed Income Option (PFIO), which was available for inclusion in the plan.

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