Niche News

Labor Department says plaintiffs withdrew Supreme Court petition in Pizarro v. Home Depot

Interesting: 0/0 • Support: 0/0Log in to vote

Key takeaways

  • Plaintiffs in Pizarro v. Home Depot withdrew their petition for certiorari to the U.S. Supreme Court, after Home Depot won in the district court and court of appeals.
  • The plaintiffs were participants in the Home Depot FutureBuilder 401(k) defined contribution retirement plan and had brought a class action challenging the plan’s administration.
  • The Department of Labor filed an amicus brief urging the Supreme Court to review and reject the plaintiffs’ proposed legal theory regarding ERISA.
  • DOL argued that ERISA does not impose a special burden-shifting framework requiring defendants to disprove loss causation and that plaintiffs retain the burden to prove loss causation.
  • The department warned that the plaintiffs’ broader reading of the Employee Retirement Income Security Act would increase meritless litigation and impose costs on plan sponsors.
  • Solicitor Jonathan Berry and Assistant Secretary Daniel Aronowitz issued statements characterizing the withdrawal as a reaffirmation of settled legal principles and a protection for employer-sponsored retirement plans.
  • Release details: Employee Benefits Security Administration, January 9, 2026, Release Number 26-70-NAT; media contact Courtney Parella (202) 693-4676.

Follow Up Questions

What is ERISA and what does it regulate?Expand

ERISA is the Employee Retirement Income Security Act of 1974, the main U.S. federal law that sets minimum standards for most employer‑sponsored retirement and other benefit plans in the private sector. It regulates how these plans are designed and run, including when workers can join, how benefits are earned and funded, what information must be disclosed, and the fiduciary duties of those managing plan assets, and it gives participants the right to sue for benefits and breaches of duty.

What is a petition for certiorari and what does withdrawing one mean for the case?Expand

A petition for certiorari is a formal request asking the U.S. Supreme Court to review and possibly change a lower court’s decision. When the party who filed it withdraws the petition (or the case is voluntarily dismissed under Supreme Court Rule 46), the Supreme Court does not review the case and the lower court’s judgment remains in place, effectively ending further appeals in that case.

What is "loss causation" and why does it matter in ERISA lawsuits?Expand

In ERISA cases, “loss causation” means showing that a plan fiduciary’s alleged wrongdoing actually caused a financial loss to the retirement plan. It matters because courts treat this as an essential element of an ERISA breach‑of‑fiduciary‑duty damages claim, and in Pizarro v. Home Depot the Eleventh Circuit held that the plaintiffs—not the defendants—must prove that link, which is the burden‑of‑proof rule the Labor Department supported in its amicus filing.

What is an amicus brief and why would the Department of Labor file one in this case?Expand

An amicus brief is a written submission to a court by someone who is not a party to the case (an “amicus curiae” or “friend of the court”) offering additional legal arguments, expertise, or information to help the judges decide. The Department of Labor, which enforces and interprets ERISA, filed an amicus brief in Pizarro to tell the Supreme Court how it believes ERISA’s loss‑causation rules should work nationwide and to argue against a legal theory it thought would expand fiduciary liability and litigation.

Who are "plan sponsors" and how would broader liability affect them?Expand

Under ERISA, a “plan sponsor” is usually the employer (or sometimes a union or group of employers) that sets up and maintains an employee benefit plan—in a 401(k) case like this, Home Depot is the plan sponsor. If ERISA liability were broadened by easing plaintiffs’ burden on loss causation, plan sponsors could face more lawsuits, higher legal and insurance costs, and greater risk in offering retirement plans, which is why the Labor Department argued against the plaintiffs’ theory in this case.

What is the Home Depot FutureBuilder 401(k) plan and who participates in it?Expand

The Home Depot FutureBuilder 401(k) plan is Home Depot’s tax‑advantaged, defined contribution retirement savings plan that lets eligible employees contribute part of their pay, typically with company matching contributions, to build an individual retirement account. Participants are Home Depot associates (and, if they keep assets in the plan, some former employees) who enroll in the plan, which is administered through providers such as Alight Solutions and is one of the employer‑sponsored 401(k) plans governed by ERISA.

Comments

Only logged-in users can comment.
Loading…