🗞️ DOL Celebrates Victory After Plaintiffs Abandon Home Depot ERISA Case

On January 7, 2026, plaintiffs in Pizarro v. Home Depot withdrew their petition for certiorari from the U.S. Supreme Court, ending their class action challenge to Home Depot's FutureBuilder 401(k) retirement plan administration. The withdrawal came just two days before the Supreme Court was scheduled to decide whether to grant certiorari.

The case centered on allegations that Home Depot's fiduciaries breached their duties under the Employee Retirement Income Security Act (ERISA) by failing to monitor excessive advisory fees and retaining underperforming investment options in the $9 billion, 230,000-participant plan. Home Depot prevailed at both the district court (2022) and the Eleventh Circuit Court of Appeals (2024).

The case highlighted a significant circuit split on burden of proof in ERISA cases. The First, Fourth, Fifth, and Eighth Circuits have held that once plaintiffs prove a fiduciary breach and plan loss, the burden shifts to defendants to disprove causation. The Sixth, Seventh, Ninth, Tenth, and Eleventh Circuits require plaintiffs to prove all elements, including loss causation. The Second Circuit has approved both approaches in published opinions.

In a dramatic policy reversal, the Department of Labor filed an amicus brief in December 2025 reversing its previous position. The DOL now argues that "the ordinary default rule" requires plaintiffs to bear the burden of proving causation, contradicting its February 2023 brief supporting burden-shifting to defendants. The DOL cited a six-fold increase in ERISA excessive-fee lawsuits between 2016 and 2022 and warned that burden-shifting "would fuel meritless litigation and impose unnecessary costs on plan sponsors."

Solicitor Jonathan Berry stated the withdrawal "speaks volumes," suggesting plaintiffs abandoned their petition rather than risk an unfavorable Supreme Court ruling after the DOL urged the Court to reject their legal theory. Assistant Secretary Daniel Aronowitz characterized the outcome as "a victory for common sense, sound legal doctrine" and the department's commitment to "ending regulation by litigation."

Key Points

• Case Withdrawn: Plaintiffs voluntarily dismissed their Supreme Court petition on January 7, 2026, two days before scheduled conference
• Previous Victories: Home Depot won at both district court (2022) and Eleventh Circuit (2024) on grounds that plaintiffs failed to prove loss causation
• DOL Policy Reversal: Department reversed its 2023 position, now arguing plaintiffs must prove all claim elements including causation
• Circuit Split: Federal appellate courts divided on whether burden shifts to employers (First, Fourth, Fifth, Eighth) or remains with plaintiffs (Sixth, Seventh, Ninth, Tenth, Eleventh); Second Circuit has approved both approaches
• Plan Size: Home Depot FutureBuilder 401(k) had $9.1 billion in assets and 230,000 participants as of 2019
• Claims: Alleged excessive advisory fees from managed account services and retention of underperforming investment options
• Legal Standard: Eleventh Circuit held plaintiffs must prove breach was "objectively imprudent" and caused losses
• DOL Rationale: Cited surge in ERISA litigation and concern that burden-shifting enables weak claims to survive to trial

Primary Source

Primary Source Author: U.S. Department of Labor Employee Benefits Security Administration

Primary Source: U.S. Department of Labor Employee Benefits Security Administration Press Release

Primary Source Link: https://www.dol.gov/newsroom/releases/ebsa/ebsa20260109

Supplemental Links

• U.S. Chamber of Commerce - Pizarro v. Home Depot Case Summary
• Eleventh Circuit Opinion (August 2024)
• DOL Position Reversal Analysis
• NAPA-NET: Case Dismissal Coverage
• PLANSPONSOR: Plaintiffs Drop Case
• Bloomberg Law: DOL Shift Coverage
• Circuit Split Analysis - Hall Benefits Law
• Miller & Chevalier: Circuit Split Overview