Scott Burnett Smith Quoted in Law360 on Appellate Panel Decision on ERISA Self-Dealing Suits


Media Mention

Bradley partner Scott Burnett Smith, founder and chair of the firm’s Appellate Practice Group, discussed the recent Second Circuit decision on Goldman Sachs’ win in which the company was granted summary judgement on claims that the proprietary fund offerings breached a fiduciary duty of loyalty or prudence under ERISA.

It was noted that the appellate panel’s decision arose from its rejection of the contention that the lack of an investment policy statement, or IPS, was evidence of a faulty 401(k) management process. Smith said that even though this case was unpublished, he thought the panel's ruling was an "important" one.

Smith said the Goldman decision offered a "very muscular endorsement of the procedural view of these cases" by the appellate court, with the panel's opinion showing how a good process can protect an employer even if the funds being challenged were ultimately removed following under performance.

"As long as the plan uses good procedures, and has good advisers, the second-guessing is going to fail," Smith said.

The full article, “2nd Circ. Shows How To Shut Down ERISA Self-Dealing Suits,” was published by Law360 on February 16, 2024. (login required)