A Good Defense Against Lawsuits
Advisers can suggest provisions to lessen a plan’s exposure.
The lawsuit against T. Rowe Price had accused the firm of filling its retirement investment menu with proprietary funds.
The 9th Circuit ruled that a prudent fiduciary in the same circumstances as the defendants could view the proposed alternative course of action regarding company stock in Hewlett-Packard's 401(k) plan as likely to cause more harm than good without first conducting a proper investigation.