Benefits & Executive Compensation News

Northwestern Retirement Plan Suit Denied Rehearing by 7th Cir.

May 12, 2020, 12:45 PM

Northwestern University employees who accused the school of mismanaging their retirement plans failed to convince the Seventh Circuit to reconsider its March decision rejecting their lawsuit.

The court on Monday denied the workers’ petition for rehearing, leaving in place a March 25 decision throwing out all claims against the school.

The workers said rehearing was necessary because the court applied a “heightened pleading standard” that conflicts with the court’s prior decisions in Employee Retirement Income Security Act class actions. The decision also creates a circuit split with the Third Circuit, which in 2019 allowed a similar lawsuit to move forward...

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