"Actual Knowledge" and ERISA Statute of Limitations Issues in Proprietary Funds Litigation

Summary

This practice note addresses the "actual knowledge" prong of ERISA's statute of limitations for alleged fiduciary breach in a manner that may be particularly relevant to asset management companies. First, the note explores the differing approaches to actual knowledge currently existing among the federal circuits—a split that may soon be resolved by the Supreme Court of the United States, given the Court's recent grant of certiorari on the issue. This practice note then explores these statute of limitations issues in the more particular context of so-called "proprietary funds litigation," which involves retirement plan participants suing their plan sponsor(s) due to the inclusion of the sponsor's own proprietary fund offerings in the 401(k) lineup.