The Supreme Court ruled unanimously on April 17 that Cornell University employees may pursue a class action lawsuit in which they claim that their retirement plans were mismanaged and charged exorbitant fees.
The U.S. Court of Appeals for the Second Circuit previously held that the employees’ lawsuit could not move forward for lack of evidence.
The 9–0 opinion in Cunningham v. Cornell University was written by Justice Sonia Sotomayor.
The case arose when about 30,000 Cornell University employees alleged that their employer’s defined contribution retirement plans, which had $3.3 billion in funds under management, paid excessive recordkeeping fees from 2010 to 2016.
They said the fees were so high because the plans offered too many investment choices and dealt with too many recordkeepers, according to the petition….