Minnesota Judge Denies Request for Stay in DOL Lawsuit
A U.S. district judge has denied a request by the Justice Department to stay a lawsuit brought against the Department of Labor by Thrivent Financial for Lutherans.
Judge Susan Richard Nelson of the U.S. District Court for the District of Minnesota denied a request for a stay of proceedings in light of President Trump’s recently issued memorandum directing the Secretary of Labor to examine the fiduciary rule which begins implementation on April 10th.
The Labor Department argued that a stay is appropriate because the subject matter of the litigation may soon be substantially revised or even rescinded. Judge Nelson disagreed.
“Mere speculation about the possibility of administrative action—especially when compounded by uncertainty regarding what form that action might take—does not discharge that burden,” said Nelson.
A summary judgment hearing for the Thrivent case is currently scheduled for March 3rd.
Last week, the fiduciary rule survived another court challenge when a judge in Kansas ruled in favor of the Labor Department in a case brought by Market Synergy, an insurance firm that develops fixed index annuities.
