Investment Professionals

Response to Industry Claims About DOL Rule Proposal to Strengthen Protections for Retirement Savers

Industry groups seeking to stave off a new Department of Labor rule proposal to strengthen protections for retirement savers have argued that it would unleash a flood of litigation. While it is true that retirement savers with meritorious claims should find it easier to recover their losses if the rule is adopted, there is simply no basis for the claim that the rule would significantly increase the amount of litigation. To suggest that it would ignores not only the high cost of pursuing claims, and the particular difficulty of pursuing class action lawsuits, but the plain language of the rule itself.