In a unanimous decision, the Supreme Court has ruled in favor of participants in Edison International's 401(k) plan who claimed company fiduciaries violated their duty to monitor three retail-class mutual funds.
The decision in Tibble vs. Edison International overturns the ruling of the 9th Circuit Court of Appeals, which upheld a ruling from U.S. District Court for the Central District of California in favor of Edison.
“ERISA's fiduciary duty is derived from the common law of trusts, which provides that a trustee has a continuing duty—separate and apart from the duty to exercise prudence in selecting investments at the outset—to monitor, and remove imprudent, trust investments,” wrote Justice Stephen Breyer, who delivered the opinion for the court.
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