ERISA Fiduciary Litigation In 2025 Signals Continued Growth Heading Into 2026

2025 was a busy year for ERISA fiduciary litigation, with over 155 new cases concerning breaches of fiduciary duty filed. Large 401(k) plans continued to be a primary focus of ERISA class actions, particularly defined contribution plans holding between $250 and $750 million in assets. Continuing trends observed in recent years, plaintiffs brought allegations pertaining to excessive fees, imprudent investment decisions, and failure to monitor service providers. 2025 also saw an increase in newer claims under ERISA, such as allegations regarding the imprudent or disloyal use of plan forfeitures.

2025 Trends in ERISA Fiduciary Litigation

Defined Contribution Plans continued to be the primary focus of ERISA fiduciary class actions in 2025, followed by Health Plans and Employee Stock Ownership Plans (ESOPs). While the types of plans involved in ERISA lawsuits have remained largely consistent over the years, the legal theories invoked have continued to develop. Filings remained widespread across jurisdictions and plan sponsors, with healthcare systems, universities, and private corporations continuing to attract scrutiny.

Over the past decade, more than 600 lawsuits have been filed alleging excessive fees and imprudent investments against ERISA defined contribution plans. In 2025, excessive fee lawsuits reached their highest level since 2020, with 94 class actions filed. Additionally, 2025 saw consistent growth in allegations of imprudent investments and forfeitures.

This sustained activity demonstrates that ERISA fiduciary litigation trends are driven less by recurring market events and more by a long‑term shift in how retirement plan governance is evaluated.

Types of ERISA Fiduciary Claims Gaining Traction

ERISA lawsuits in 2025 focus on several core categories of fiduciary claims:

Excessive Fee Allegations

Claims alleging unreasonable recordkeeping, investment management, and administrative fees continued to be common allegations in 2025 ERISA class actions. Plaintiffs bring such cases when the fiduciaries of their retirement plan fail to leverage plan size to negotiate lower fees or retain higher‑cost investment options when cheaper alternatives are available. As investment management fees and recordkeeping fees have continued to decline over time, fiduciaries should regularly ensure the fees charged to their plans remain competitive in the market.

Imprudent Investment Selection and Monitoring

Many ERISA lawsuits allege that fiduciaries breached their duties by offering underperforming or unnecessarily expensive investment options, failing to conduct regular reviews of those investment options, or maintaining proprietary investment products without adequate justification. These claims focus on whether fiduciaries followed a prudent and well-documented process in selecting and retaining plan investments.

Failure to Monitor Service Providers

Another common ERISA fiduciary breach claim arises when plan fiduciaries fail to adequately oversee service providers to their plan, such as recordkeepers, consultants, and investment managers. Despite their ability under ERISA to delegate responsibility for certain plan matters, fiduciaries retain an ongoing commitment to monitor service providers. In other words, outsourcing administrative or investment functions does not relieve fiduciaries of their core obligations under ERISA.

Misuse of Plan Forfeitures

Certain defined contribution plans provide that employer contributions return to the plan if a plan participant leaves the employer before a certain amount of time. These amounts, known as forfeitures, can be used in a variety of ways. A trend in 2025 ERISA litigation was to consider whether a plan’s governing documents mandate a particular use of forfeitures and whether the fiduciaries’ allocation of forfeitures was in the best interest of plan participants. Courts remain divided on the resolution of these issues.

The Role of Specialized Litigation Firms in Fiduciary Lawsuits

If the wave of ERISA litigation over the past years has proven anything, it is that these cases are procedurally complex, highly technical, and fact‑intensive, requiring counsel who understand not only litigation strategy but also plan administration, investment structures, and fiduciary obligations. As this area of law continues to develop, law firms with specialized ERISA expertise are the best option to ensure fiduciary compliance and provide proactive legal guidance.

Managing ERISA Litigation Risk

Plan participants should seek legal counsel with proven ability to survive motions to dismiss, discern meaningful evidence through discovery, and secure favorable settlement outcomes. Because ERISA claims turn on the adequacy of fiduciary process, plaintiffs cannot rely on investment outcomes alone. Experienced ERISA litigators can frame and develop claims to best position them for success under this standard.

Plan sponsors and fiduciaries should seek to mitigate their litigation risk by consulting with experienced fiduciary counsel to ensure their plan design and processes satisfy their fiduciary duties under ERISA. Competent ERISA counsel can help establish and refine practices for plan decision-making and documentation that can make all the difference in defending fiduciary breach claims. Whether responding to demand letters, navigating Department of Labor (DOL) inquiries, or defending class action complaints, informed legal strategy and technical expertise is essential for navigating ERISA requirements in an evolving enforcement environment.

Plaintiffs and defendants alike should look to firms with niche ERISA practices and significant class action experience to provide the specialized legal advocacy necessary for success in fiduciary breach matters. Early consultation with experienced ERISA counsel can significantly influence outcomes for plan sponsors and participants.

The Future of ERISA Litigation

The continued pace of ERISA litigation in 2025 and introduction of new legal theories confirms that fiduciary breach actions will remain a central focus of complex litigation practices for the foreseeable future. Potential plaintiffs and defendants should keep informed of legal developments that may alter their rights and responsibilities. Those considering litigation should secure counsel with deep subject matter expertise. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.