United States Fourth Circuit

Cashed-out former employees remain "participants" in defined contribution retirement plans for purposes of section 502(a)(2) of ERISA when they seek to recover amounts that they claim should have been in their accounts had it not been for alleged fiduciary impropriety. In an ERISA class action brought by former employees who maintained accounts in employer-sponsored 401(k) retirement plans and who, upon leaving employment, voluntarily sought and obtained full distribution of the vested benefits in their respective accounts, dismissal of the action is reversed as plaintiffs had "statutory standing" and did not lack Article III standing.

Appellate Information

• Decided 06/16/2008
• Published 06/16/2008

Judges

• Before NIEMEYER and SHEDD, Circuit Judges, and LEONIE M. BRINKEMA, United States District Judge for the Eastern District of Virginia, sitting by designation.

Court

• United States Fourth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Samuel K. Rosen, Harwood & Feffer, L.L.P., New York, New York, for Appellants.  Kristen Lindberg, United States Department of Labor, Washington, D.C., for Amicus Supporting Appellants.  Mark Andrew Perry, Gibson, Dunn & Crutcher, L.L.P., Washington, D.C., for Appellees.   ON BRIEF:  Paul Blankenstein, Dustin K. Palmer, Gibson, Dunn & Crutcher, L.L.P., Washington, D.C., for Appellees Janus Capital Group, Incorporated, and Janus Plan Advisory Committee;  Robert N. Eccles, Gary S. Tell, Shannon M. Barrett, O'Melveny & Myers, L.L.P., Washington, D.C., for Appellees Marsh & McLennan Companies, Incorporated, Putnam Investments, L.L.C., J.W. Greenberg, Francis N. Bonsignore, William L. Rosoff, and Sandra S. Wijnberg;  Maeve L. O'Connor, Maura K. Monaghan, Debevoise & Plimpton, L.L.P., New York, New York, for Appellees Amvescap National Trust Company and AVZ Incorporated.   Howard M. Radzely, Solicitor of Labor, Timothy D. Hauser, Associate Solicitor for Plan Benefits Security, Karen L. Handorf, Counsel for Appellate and Special Litigation, United States Department of Labor, Washington, D.C., for Amicus Supporting Appellants.  Robin S. Conrad, Shane Brennan, National Chamber Litigation Center, Washington, D.C.;   Carol Connor Flowe, Nancy S. Heermans, Caroline Turner English, Arent Fox, L.L.P., Washington, D.C., for Amicus Supporting Appellees.