Given the turmoil of the financial crisis, many people are more concerned, or at least more aware, of the contributions they make to their 401(k) accounts. Now the Supreme Court is reviewing a case that could provide grounds for employees to suit employers over poor management of these types of investment plans.
The Supreme Court has agreed to hear an appeal brought by Fifth Third Bancorp, a Cincinnati-based financial firm. The firm is defending against a class-action lawsuit that claims it continued to allow employees to invest in company stock, even after it became obvious that it was risky to do so. The plaintiffs say that in doing so Fifth Third violated federal law that says that an employer must be “diligent” in its management of retirement funds.