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May 30, 2018

Law360: When 403(b) Prudence Claims Survive Dismissal

Arthur Marrapese III, partner, had his article "When 403(b) Prudence Claims Survive Dismissal" published by Law360. The full article can be located below.

"In March of this year, the US District Court for the District of Connecticut in Vellali v. Yale University granted in part and denied in part a motion to dismiss a lawsuit against Yale's 403(b) plan fiduciaries. The Vellali complaint alleges that Yale's 403(b) plan sustained losses resulting from the mismanagement of the plan's investment and record-keeping functions.

The decision in Vellali follows similar rulings by Second Circuit district courts in connection with motions by 403(b) plan sponsors in substantially similar suits brought by the same class action law firm: Cunningham v. Cornell University,[1] Sacerdote v. New York University,[2] and Cates v. Columbia University.[3] District court Judge Kathleen Forrest authored the opinions in Sacerdote and Cates."

Read the full case analysis and legal projections here.

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