Page 461 - DCAC February 2024 Files

Notable Ruling

Indirect Compensation

• Plaintiff’s alleged Plan fiduciaries breached their duty of prudence by allegedly failing to adequately
review all of the compensation paid to Fidelity (including third party compensation paid by
Edelman Financial Engines).
• Plaintiff’s alleged that entering into managed account services with Edelman Financial Engines

through the Fidelity recordkeeping platform whereby Fidelity would receive compensation from
EFE constituted a prohibited transaction.
• Ninth Circuit found triable issues of fact as to whether the AT&T’s fiduciaries breached their duty of
prudence by allegedly failing to adequately review all of the compensation paid to Fidelity, and that
the arrangement constituted a prohibited transaction.

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