On a definitive Tuesday, the D.C. Circuit sustained Georgetown University‘s victory in a pivotal DC Circ ERISA Suit. The lawsuit accused the institution of burdening its employee retirement plans with high-cost, underperforming investment options. The unanimous decision by a three-judge panel confirmed that the lower court was correct in its judgment that the plaintiffs had not remedied the deficiencies in their case.
DC Circ ERISA Suit : Detailed Analysis of the Court’s Decision
In April 2023, a D.C. federal judge had previously dismissed the DC Circ ERISA Suit filed by Darrell Wilcox and Michael McGuire. They alleged that Georgetown had overloaded its faculty and staff retirement plans with excessive investment choices and retained multiple record-keepers, which escalated costs unnecessarily.
However, the district court found that the original complaint did not “adequately plead any claims” and that the proposed amended complaint was futile, as it failed to correct the earlier identified shortcomings. Moreover, during the oral arguments on April 9, the appeals panel scrutinized the standing of Wilcox and McGuire, focusing on their lack of allegations regarding restrictions on their ability to withdraw or transfer funds.
The Journey Through the Courts
The litigation journey began when Wilcox and McGuire initiated the DC Circ ERISA Suit in February 2018. After a dismissal less than a year later and a failed attempt to amend their complaint in May 2019, the D.C. Circuit panel temporarily revived the case in February 2021. Despite this, U.S. District Judge Amy Berman Jackson later ruled that the plaintiffs still lacked a viable claim.
