Judge Dismisses Lawsuit over NYU Employee Retirement Plans
Last week, U.S. District Judge Katherine Forrest dismissed a class-action lawsuit against New York University (“NYU”) concerning the institution’s employee retirement plans. Thousands of employees had accused NYU of mishandling their retirement plans, which included an estimated $358 million loss at two 403(b) plans. Judge Forrest ruled that the plaintiffs could not prove NYU’s retirement plan committee caused the losses by burdening employees with underperforming investment choices. The lawsuit is the first of many similar cases brought against universities and their retirement plans; Cornell, Duke and Northwestern are also being sued.