Don’t assume your clients know about the Larue case. In February 2008 the Supreme Court ruled an individual participant could sue the sponsor where in the past only a class of participants could sue.

Before Larue, Class action claims were typically limited to large employers because of the cost of initiating a class action claim. Mr. LaRue made it economical to sue even the smallest employer.

In our meetings with CFO’s we consistently see shock on their faces when they hear the Supreme Court ruled one employee can now sue as opposed to an entire class and the liability can be personal. As a fiduciary, the Cfo’s liability is only limited by his personal net worth. We repeatedly hear “They aren’t paying me enough!”

It is also worth noting that this case stemmed from an administrative issue as opposed to fiduciary.

http://www.freerepublic.com/focus/f-news/1973396/posts