David Eisenberg was quoted in a recent Law360 article regarding the significance of the U.S. Supreme Court’s May 18, 2015 ruling in Tibble v. Edison International, where the High Court vacated a Ninth Circuit ruling that plaintiffs’ claims of alleged imprudent 401(k) plan investments were time-barred. Eisenberg was quoted in the article as saying:
“Now, here’s something you don’t see every day - a unanimous Supreme Court reversing a pro-employer Ninth Circuit ruling, which had disallowed employee-beneficiary claims as time-barred and held in favor of their employer’s benefit plan. But the legal principle articulated by the Court seems unimpeachable: a trustee has a continuing duty—separate and apart from the duty to exercise prudence in selecting investments at the outset—to monitor, and remove imprudent, trust investments. Thus, when reviewing the prudence of investment selections, the date of purchase is not the only relevant date for statute of limitations purposes.”
Additional attorney comments on the ruling are available online to Law360 subscribers.