Markham Leventhal Interviewed in Daily Business Review: “Florida Aeronautical University Beats ERISA Claim Alleging $500M Plan Mismanagement”

Markham Leventhal was interviewed in a Daily Business Review article titled “Florida Aeronautical University Beats ERISA Claim Alleging $500M Plan Mismanagement.” The article examines a proposed class action lawsuit alleging Embry-Riddle Aeronautical University mismanaged its more than $500 million retirement plan. The suit was ultimately dismissed with prejudice, giving the school its second win against the same claims in recent years.

"Those allegations were just completely frivolous," he said. "The university has a retirement plan committee, the senior-most people at the university, who meet regularly, they have a professional investment advisor, and quite frankly, they couldn't have been more prudent. We viewed those allegations as just complete nonsense."

Leventhal added that class action suits challenging retirement plans have grown more frequent in recent years, particularly with the U.S. Supreme Court's reversal of standing ERISA precedent on how plaintiffs must prove a violation of the law's prohibited transaction rules in Cunningham v. Cornell earlier this year.

"What had been a holding in many courts was that in order for the plaintiff to proceed in the case and to avoid a motion to dismiss, they had to plead the absence of an exemption ... the Supreme Court reversed that," Leventhal said. "That's kind of a monkey wrench that already has increased litigation. ... These cases are filed almost every week, not necessarily against universities, but against companies and their 401(k) plans."

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The news was also reported in Bloomberg Law.