Many public companies offer their employees the option to own company stock in their 401(k) plans. But what happens when a company is aware of an issue that will cause the company's stock price to drop, like the need to issue an accounting restatement? Can the company face not only a securities lawsuit from public investors, but also breach of fiduciary duty claims by participants in the 401(k) under ERISA against the company and company insiders who also act as ERISA fiduciaries over the 401(k) plan?

On February 24, Scott was quoted in a BenefitsPro article, “The Free Market is Always One Step Ahead of Regulators.” The article suggests that the focus on 401k fee litigation has obviated the need for the Department of Labor’s proposed fiduciary rule.

As every safe harbor 401(k)/(m) plan sponsor knows, the IRS has long considered it a cardinal sin to make virtually any mid-year changes to the plan, regardless of whether they have any effect on the plan’s safe harbor benefits. Well, folks, wonders never cease!