The video titled “Tibble’s Jerry Schlichter Video Interview: What’s Next For Tibble v. Edison?” features an interview with Jerry Schlichter, the lead plaintiffs’ attorney in the landmark Supreme Court case Tibble v. Edison. The key points from the interview are as follows:
- Case Status: The case is not over; it has been remanded back to the lower courts for further proceedings. The Supreme Court unanimously favored the plaintiffs, emphasizing that the duty to monitor investments is critical but not burdensome.
- Duty to Monitor: Schlichter explains that monitoring fees and performance of investments in a 401(k) plan is straightforward and necessary. The duty involves regular reviews to ensure fees are reasonable and performance is appropriate.
- ABB and Fidelity Case: Schlichter discusses the significant case against ABB and Fidelity, where it was found that Fidelity provided services to the company at a loss while charging high fees on the 401(k) plan to make up for it. This practice was deemed self-dealing and is strictly prohibited.
- Firm’s Mission: Schlichter’s firm exclusively represents individuals, not companies, focusing on cases involving financial abuse and defective products. They work on a contingency basis, investing in cases they believe in without charging upfront fees.
- Impact on 401(k) Industry: Schlichter is proud of the firm’s impact, noting that their efforts have contributed to reduced fees across the 401(k) industry, benefiting American workers and retirees.
The video, published on March 29, 2016, is approximately 4 minutes long and has received 237 views.