Federal Judge Upholds Department of Labor Fiduciary Rule

Things appear to be moving very quickly for the Trump administration: last Friday, February 3, President Trump issued a Presidential Memorandum regarding the Department of Labor Fiduciary Rule.  In the memorandum, he ordered the Department to conduct a thorough review of the Fiduciary Rule prior to its April 2017 effective date.  For more information, please see our Client Alert. We noted that the Fiduciary Rule was under judicial scrutiny in a suit led by the U.S. Chamber of Commerce and that a decision would be announced imminently.  On Wednesday evening, Judge Barbara M.G. Lynn, a Texas federal judge, granted the Department of Labor’s motion for summary judgment, ruling against the Chamber of Commerce and affiliated trade groups.  Her decision came on the heels of a request from the Trump Department of Labor to stay the suit in light of the Presidential Memorandum. This decision could certainly undermine any claims by the Trump administration that the Fiduciary Rule is outside the Department of Labor’s authority.

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