Cunningham v. Cornell University

In April 2025, the U.S. District Court for the Southern District of New York considered claims by participants in Cornell University's 403(b) retirement plan, including Casey Cunningham, alleging that Cornell and its Retirement Plan Oversight Committee breached ERISA fiduciary duties by allowing excessive recordkeeping and administrative fees and retaining high-cost investment options. Plaintiffs sought class-wide relief. The court's April 17 decision addressed summary judgment motions, allowing core fiduciary-breach claims to proceed while narrowing certain allegations. The case highlights the continuing judicial scrutiny of university retirement plan fees under federal benefits law.

On April 17, 2025, the court issued an opinion granting in part and denying in part the parties' summary judgment motions, allowing breach of fiduciary duty claims to proceed while narrowing certain prohibited transaction claims. No final judgment or settlement had been entered as of that date.

Whether Cornell University and its retirement plan committee breached ERISA duties of prudence and loyalty by failing to monitor and control excessive fees and by retaining underperforming or high-cost investments; whether plaintiffs had standing and whether the class should be certified.

The case reinforces ERISA enforcement against university retirement plans, prompting many higher education institutions to review fee structures and investment menus. It also signals continued plaintiff-side focus on 403(b) plan compliance and fiduciary oversight.