The Supreme Court isn’t a friend of workers. So a recent ruling that retirees can sue employers who help investment firms rip them off with high fees and poor performance is a rare and crucial win.
By Matthew Cunningham-Cook, Jacobin
A unanimous Supreme Court ruling Monday in Hughes v. Northwestern University ensures that Americans will still be able to sue employers and Wall Street banks that bleed dry their retirement accounts — a landmark precedent in protecting the $7.3 trillion Americans hold in 401(k) accounts.
The 8-0 ruling, written by Sonia Sotomayor, found that 401(k) plan participants could continue to take legal action against employers for including high-fee, high-risk investments in their 401(k) lineup, even if they also included lower-fee, lower risk options.

The decision could be a blow against powerful private equity industry titans, who for years have been aiming to convince 401(k) plans to include their high-fee, high-risk offerings. Blackstone Group CEO Stephen Schwarzman has said accessing retirees’ 401(k) accounts was “one of our dreams.”
With 3.5 million American seniors being unable to afford the cost of prescription drugs, and 5.2 million elders who are food insecure, the new ruling could trigger additional litigation that forces improved governance in 401(k)s — potentially saving Americans hundreds of billions of dollars in collective fees.
“It’s going to affect massive numbers of people,” said Jerry Schlichter, the St Louis-based attorney who brought the Hughes case before the court. “Because the 401(k) is America’s retirement system now.”
Currently, the median 401(k) balance for Americans sixty-five and older is just $64,548. That amount could be as much as 40 percent higher, if it wasn’t for fees paid to Wall Street.
Recent Posts
The Trump-Musk Spat Exposes Our Ugly Plutocracy
June 7, 2025
Take Action Now Two billionaires, Donald Trump and Elon Musk, are squabbling over the federal government’s spoils. It seems almost quaint to worry…
Donald Trump Is Advertising Genocide As A Business Opportunity
June 6, 2025
Take Action Now The U.S. president is still trying to sell the world on the destruction of Gaza.By Edward Hunt, Foreign Policy in Focus Among all…
The FBI Sought Search Warrants For Columbia Students’ Social Media
June 5, 2025
Take Action Now New court documents reveal how the feds tried to unmask the Columbia students — and got blocked by federal judges on First Amendment…
Greta Thunberg Speaks From Aid Ship Heading To Gaza Despite Israeli Threats: It’s My Moral Obligation
June 5, 2025
Take Action Now “We cannot have climate justice without social justice. The reason why I am a climate activist is not because I want to protect…