Multnomah Group continues to monitor the status of two lawsuits challenging the Department of Labor’s (DOL’s) Biden-era fiduciary rule. The rule was introduced in early 2024, and immediate challenges were faced from two separate lawsuits filed by insurance industry groups. The groups claimed that the rule would discourage advisors from providing much needed advice and that it was essentially the same as a previous rule struck down in 2018. The rule was set to take effect in September of 2024, but a judge put a national stay on the effective date while the cases worked their way through the courts. That judge indicated that the stay was warranted because plaintiffs had a strong likelihood of prevailing.
Earlier this year, the Department of Labor was granted a ‘pause’ in litigation so that new leadership could review the cases and determine the next steps.
This week, a judge granted the DOL’s request for an additional 60 days. It is unlikely that the DOL will continue to defend the rule, but it is unclear whether they will issue a revised fiduciary rule.
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