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Supreme Court relaxes ERISA pleading standard

Montage with the motto of the U.S. Supreme Court, "Equal Justice Under Law," is inscribed over the front entrance of the courthouse.
GRIP Montage: Getty Images/Philip Yabut

The outcome makes it substantially easier for beneficiaries to sue their fund administrators.

The Supreme Court has significantly relaxed pleading standards for alleging prohibited transactions involving third parties under the Employee Retirement Income Security Act of 1974 (ERISA), which regulates how privately managed benefit plans are administered.

The plaintiff trust beneficiaries in this case sued Cornell University and other plan fiduciaries for causing the