March 4, 2019

Federal Judge Upholds Plaintiffs' Interpretation of Time Limits to File ERISA Suit

Executive Director

Employees at Adams & Associates sued over a 2012 ESOP transaction, saying that the ESOP had overpaid. The company responded that the suit was filed after the expiration of the three-year limitation for filing a lawsuit under the Employee Retirement Income Security Act (ERISA), since the suit was filed more than there years after the company's government filing. The judge ruled that the clock begins on the three-year period when the participants have "actual" rather than constructive knowledge of the alleged breach. Various circuits have different interpretations of the three-year limitation period.