The plaintiffs didn’t stop there. They plunged deeper, accusing NVIDIA of turning a blind eye to lower-cost mutual fund alternatives and sticking with pricier investments, thus flouting their fiduciary duty. This purported oversight, they claimed, drained millions from the pockets of plan participants.
Judge Lucy H. Koh, in a previous verdict, set the lawsuit aside in September 2021. But, akin to a phoenix, the workers rejuvenated their case with a revised plea. NVIDIA, predictably, sought an all-out dismissal, citing lack of evidence for the breach of fiduciary duty under ERISA.
However, Judge Tigar highlighted the crux: while the claims remained consistent, the latest plea emphasized the uniformity of services across record-keepers and that NVIDIA’s vast plan size deserved the leanest of fees. In essence, a competent fiduciary should have sought lower fees – a stance backed by the Seventh Circuit’s March verdict.
“Defendants’ arguments to the contrary are unpersuasive,” stated Judge Tigar, curtly dismissing NVIDIA’s counterclaims. He also remarked that the precise accuracy of the plaintiffs’ claims and the alleged “reasonable” fee is $35 per participant need not be settled at this preliminary stage.
