Prudential Insurance Co. of America recently filed an appellate brief with the U.S. Court of Appeals for the Third Circuit, arguing that the lower federal district court correctly granted summary judgment in a class action lawsuit. Plaintiff workers have appealed the court’s decision, alleging that Prudential violated its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by making imprudent decisions, resulting in millions of dollars in losses from retirement plan investments. The case is Young Cho v. Prudential Insurance Co. of America et al., Case Number 25-1134, U.S. Court of Appeals for the Third Circuit.
In its appellate brief, Prudential characterized the workers’ ERISA claims as merely speculative. The company praised the lower court’s “thorough but straightforward application of the summary judgment standard to the ample record evidence of Prudential’s prudent fiduciary decision-making process.” In December 2024, the federal district court granted summary judgment in Prudential’s favor, finding that the workers had failed to support their claims that deficiencies in the company’s investment review process led to financial losses.
The workers appealed to the Third Circuit, alleging that Prudential’s fiduciary process was imprudent as a matter of law and not based on appropriate objective data. They characterize the lower court’s decision as dismissive of the structural defects of Prudential’s fiduciary process and argue that the judge should not have dismissed their case.
Prudential opposes the workers’ arguments, saying that the workers had no evidence of a fiduciary breach that would violate ERISA. According to Prudential, the workers failed to prove that the company’s fiduciary process or investments were imprudent or that the plan suffered losses. The company also claimed that the workers made no showing of a failure to review fiduciaries’ performance or act on known breaches of fiduciary duty. Finally, Prudential noted the lower court’s findings that its investment decisions were objectively prudent.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
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