Mike Hadley Discusses Impact of Supreme Court Ruling on ERISA Pleading Standards with 401kWire.com and the SPARK Institute
- Published Date: April 21, 2025
Davis & Harman Partner Mike Hadley was recently featured in the 401kWire.com article, “SCOTUS Rules, and DC Insiders Fear ‘A Lot More Litigation’” where he commented on the Supreme Court’s ruling in Cunningham v. Cornell University regarding harmful 401(k) class-action litigation. Additionally, Hadley was quoted in the SPARK Institute’s response to the Court’s decision.
On April 21, 2025, 401kWire.com reported that the recent Supreme Court ruling in Cunningham v. Cornell University granted a win for plaintiffs in defined contribution plan litigation that has made ERISA attorneys fear that the decision will open the door for even more lawsuits impacting 401(k) and other types of retirement plans.
Hadley is quoted saying that SCOTUS “didn’t take more seriously” 401(k) class-action litigation and that the decision is “harmful to plan sponsors and the 401(k) industry.” Hadley’s comment continued stating that he is “a little heartened” by the concurring opinion that emphasized the “importance of trying to manage the cases that should not be clogging up our courts.” Hadley noted that he is hopeful that Congress or the Department of Labor “will be helpful in enforcing pleading standards in these cases,” and that it is important to only have cases with real merit be brought to the courts.
A link to the full 401kWire.com article can be found here.
On the same day, the SPARK Institute released a response statement to the Court’s ruling. The SPARK Institute expressed its deep concern over the Court’s decision, which significantly alters the legal landscape governing retirement plan fiduciaries under ERISA.
Hadley is quoted to say:
“The Court’s decision shifts the burden to fiduciaries far too early in the process, requiring them to defend routine, good-faith transactions that are vital to plan operations. . . Congress clearly intended for reasonable service arrangements to be exempt from these types of claims. Now, unless reforms are made, we risk seeing litigation drive decision-making in ways that don’t serve participants’ best interests.”
A link to the full SPARK Institute press release can be found here.
