Did your 401(k) lose money because your employer picked underperforming investment funds? A recent federal appeals court decision just made it easier for workers to hold retirement plan sponsors accountable — and it could affect your rights.
What Happened
On Aug. 17, 2026, the U.S. Court of Appeals for the 11th Circuit revived an ERISA class action against Royal Caribbean Cruises brought by employees in the company’s 401(k) plan. The case is Johnson v. Russell Inv. Mgmt., LLC, No. 25-10692, 2026 WL 2387006 (11th Cir. Aug. 17, 2026).
The workers claimed Royal Caribbean broke its fiduciary duty when it swapped out well-known Vanguard target-date funds for a suite of Russell target-date funds. Those Russell funds, according to the participants, charged higher fees, carried a negative industry rating, and consistently trailed the funds they replaced — underperforming by more than 1.5% to 2% per year over several years.
A Florida federal judge dismissed the case before trial. The appeals court reversed that decision and sent the case back for further proceedings. Id. at *1 (holding that, “[B]ecause a plaintiff may, but need not, rely on apples-to-apples comparator evidence at summary judgment in a breach of fiduciary duty case like this one,” the court would reverse and remand for the district court to consider the full record on the issue of objective imprudence).
Why This Ruling Matters
The trial court dismissed the case because the workers didn’t provide an exact apples-to-apples comparison — a nearly identical fund with the same strategy and risk profile — to prove the Russell funds were a bad choice. Id. at *3 (noting the district court reasoned that an ERISA plaintiff must identify comparator funds to establish objective imprudence through such a comparison).
The 11th Circuit rejected that rigid requirement. It held that an ERISA plaintiff need not identify an apples-to-apples comparison to establish objective imprudence in every case. Id. at *1. As the court put it, “some of the most objectively imprudent investments will lack an apples-to-apples comparison precisely because they are such objectively bad fiduciary decisions.” Id. at *5.
This is a significant win for retirement savers. It means courts must look at the full picture — fees, industry ratings, performance, and how a plan chose and monitored its investments — not just a single comparison chart.
Signs Your 401(k) May Have Been Mismanaged
Under ERISA, the people who run your retirement plan must act prudently and in your best interest. You may have a claim if your plan:
- Charged excessive or hidden fees
- Offered proprietary or in-house funds that underperformed
- Kept poorly rated or unpopular investment options
- Failed to monitor and remove bad funds over time
- Ignored cheaper, better-performing alternatives
Losses like these can quietly cost participants tens of thousands of dollars over a career.
Talk to an ERISA Attorney
If you are a current or former 401(k) participant who lost savings to high-fee or underperforming funds, you may be entitled to recover your losses. ERISA claims involve strict deadlines, so acting promptly matters.
Our attorneys handle ERISA fiduciary breach and 401(k) mismanagement cases nationwide. Contact us today for a free, confidential consultation to learn whether your retirement plan violated the law — and what you can do about it.
This post is for general information only and is not legal advice.