On August 29, 2024, on behalf of O’Reilly Automotive, Inc. and the other named defendants, Skadden secured the affirmance of a rare 12(b)(6) dismissal of a putative class action complaint brought under the Employee Retirement Income Security Act of 1974 (ERISA) in the U.S. Court of Appeals for the Eighth Circuit. The plaintiffs alleged that O’Reilly breached fiduciary duties under ERISA by allowing participants of its 401(k) retirement plan to pay purportedly excessive recordkeeping and investment management fees in connection with the plan. The Eighth Circuit affirmed the district court’s dismissal with prejudice, holding that the plaintiffs failed to plead “meaningful benchmarks” for their excessive fee allegations. The appeals court further held that the plaintiffs never properly requested leave to amend their complaint, confirming the dismissal with prejudice was appropriate.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates