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"para_6" }, { "text": "____________________", "paragraph_id": "para_7" }, { "text": "ANN JOHNSON,", "paragraph_id": "para_8" }, { "text": "as the representative of a class of similarly", "paragraph_id": "para_9" }, { "text": "situated persons, and on behalf of Royal", "paragraph_id": "para_10" }, { "text": "Caribbean Cruises Ltd Retirement Savings Plan,", "paragraph_id": "para_11" }, { "text": "Plaintiff-Appellant,", "paragraph_id": "para_12" }, { "text": "versus", "paragraph_id": "para_13" }, { "text": "RUSSELL INVESTMENT MANAGEMENT, LLC,", "paragraph_id": "para_14" }, { "text": "RUSSELL INVESTMENTS TRUST COMPANY,", "paragraph_id": "para_15" }, { "text": "f.k.a. Russell Trust Company,", "paragraph_id": "para_16" }, { "text": "Defendants,", "paragraph_id": "para_17" }, { "text": "ROYAL CARIBBEAN CRUISES LTD.,", "paragraph_id": "para_18" }, { "text": "ROYAL CARIBBEAN CRUISES LTD.,", "paragraph_id": "para_19" }, { "text": "Defendants-Appellees.", "paragraph_id": "para_20" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 1 of 14", "paragraph_id": "para_21" }, { "text": "2 Opinion of the Court 25-10692", "paragraph_id": "para_22" }, { "text": "____________________", "paragraph_id": "para_23" }, { "text": "Appeal from the United States District Court", "paragraph_id": "para_24" }, { "text": "for the Southern District of Florida", "paragraph_id": "para_25" }, { "text": "D.C. Docket No. 1:22-cv-21735-RNS", "paragraph_id": "para_26" }, { "text": "____________________", "paragraph_id": "para_27" }, { "text": "Before JILL PRYOR, LUCK, and BRASHER, Circuit Judges.", "paragraph_id": "para_28" }, { "text": "BRASHER, Circuit Judge:", "paragraph_id": "para_29" }, { "text": "This appeal is about whether Royal Caribbean breached its", "paragraph_id": "para_30" }, { "text": "fiduciary duty under the Employee Retirement Income Security", "paragraph_id": "para_31" }, { "text": "Act. Ann Johnson, on behalf of a class of similarly situated plaintiffs,", "paragraph_id": "para_32" }, { "text": "complained that Royal Caribbean breached its obligation to pru-", "paragraph_id": "para_33" }, { "text": "dently select investments for its employee retirement plan. Specif-", "paragraph_id": "para_34" }, { "text": "ically, she alleged that Royal Caribbean’s decision to replace Van-", "paragraph_id": "para_35" }, { "text": "guard Target Date Funds with Russell Target Date Funds in the", "paragraph_id": "para_36" }, { "text": "plan’s menu of investment options caused the class members’", "paragraph_id": "para_37" }, { "text": "losses because the investment was objectively imprudent.", "paragraph_id": "para_38" }, { "text": "The district court granted summary judgment because it", "paragraph_id": "para_39" }, { "text": "concluded that Johnson was obligated to, but did not, submit evi-", "paragraph_id": "para_40" }, { "text": "dence that the Russell Target Date Funds was objectively impru-", "paragraph_id": "para_41" }, { "text": "dent compared to another target date fund that had the same in-", "paragraph_id": "para_42" }, { "text": "vestment strategy and risk profile. We believe the district court", "paragraph_id": "para_43" }, { "text": "erred. An ERISA plaintiff need not identify an apples-to-apples", "paragraph_id": "para_44" }, { "text": "comparison to establish objective imprudence in every case. In this", "paragraph_id": "para_45" }, { "text": "case, Johnson argues that the very features that distinguish the Rus-", "paragraph_id": "para_46" }, { "text": "sell Target Date Funds from otherwise comparable funds are what", "paragraph_id": "para_47" }, { "text": "made the Russell funds an objectively imprudent investment. Be-", "paragraph_id": "para_48" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 2 of 14", "paragraph_id": "para_49" }, { "text": "25-10692 Opinion of the Court 3", "paragraph_id": "para_50" }, { "text": "cause a plaintiff may, but need not, rely on apples-to-apples com-", "paragraph_id": "para_51" }, { "text": "parator evidence at summary judgment in a breach of fiduciary", "paragraph_id": "para_52" }, { "text": "duty case like this one, we reverse and remand for the district court", "paragraph_id": "para_53" }, { "text": "to consider the full record on the issue of objective imprudence.", "paragraph_id": "para_54" }, { "text": "I.", "paragraph_id": "para_55" }, { "text": "We will start with some background information about re-", "paragraph_id": "para_56" }, { "text": "tirement plans and target date funds. A self-directed retirement", "paragraph_id": "para_57" }, { "text": "plan provides a menu of investment options from which partici-", "paragraph_id": "para_58" }, { "text": "pants can choose to invest their funds. The investment menu is set", "paragraph_id": "para_59" }, { "text": "by the plan’s sponsor—here, Royal Caribbean. Many plans, like the", "paragraph_id": "para_60" }, { "text": "one in this case, offer target date funds, or TDFs, as an option. A", "paragraph_id": "para_61" }, { "text": "TDF is an investment vehicle that simplifies retirement planning", "paragraph_id": "para_62" }, { "text": "by allowing investors to invest all their savings in a single diversi-", "paragraph_id": "para_63" }, { "text": "fied fund that changes its asset allocation over time based on a tar-", "paragraph_id": "para_64" }, { "text": "get retirement date, rather than actively managing many different", "paragraph_id": "para_65" }, { "text": "investments across their portfolio. Consistent with investing best", "paragraph_id": "para_66" }, { "text": "practices, TDFs adjust their asset allocation to become more con-", "paragraph_id": "para_67" }, { "text": "servative as the investor’s retirement date (i.e., the fund’s “target", "paragraph_id": "para_68" }, { "text": "date”) approaches. A TDF’s approach to risk is called its", "paragraph_id": "para_69" }, { "text": "“glidepath.” Some TDFs use “to” glidepaths (i.e., assets are most", "paragraph_id": "para_70" }, { "text": "conservatively allocated at the target date—the most conservative", "paragraph_id": "para_71" }, { "text": "approach), while other TDFs employ “through” glidepaths (i.e., as-", "paragraph_id": "para_72" }, { "text": "sets reach the most conservative allocation some period of years", "paragraph_id": "para_73" }, { "text": "beyond the target date—a less conservative approach).", "paragraph_id": "para_74" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 3 of 14", "paragraph_id": "para_75" }, { "text": "4 Opinion of the Court 25-10692", "paragraph_id": "para_76" }, { "text": "Now, with the stage set, we move to the facts leading to this", "paragraph_id": "para_77" }, { "text": "dispute. In 2014, Royal Caribbean’s Investment Committee de-", "paragraph_id": "para_78" }, { "text": "cided to restructure its employee retirement plan.1 To that end, the", "paragraph_id": "para_79" }, { "text": "Committee established a Request for Proposal Team to solicit", "paragraph_id": "para_80" }, { "text": "RFPs from investment companies for Plan advisory and manage-", "paragraph_id": "para_81" }, { "text": "ment services. Eleven prospective vendors submitted proposals,", "paragraph_id": "para_82" }, { "text": "and Royal Caribbean’s outside counsel prepared a memorandum", "paragraph_id": "para_83" }, { "text": "to evaluate each one. Although the memorandum did not list Rus-", "paragraph_id": "para_84" }, { "text": "sell among the initial top four contenders, it noted that “Russell’s", "paragraph_id": "para_85" }, { "text": "strength is their expertise in providing consulting services and in-", "paragraph_id": "para_86" }, { "text": "vestment advice.” Doc 177-29 at 5. Upon reviewing the memo, the", "paragraph_id": "para_87" }, { "text": "RFP Team selected Russell as one of its four finalists because of its", "paragraph_id": "para_88" }, { "text": "“[s]trong expertise in providing consulting service and investment", "paragraph_id": "para_89" }, { "text": "advice.” Doc. 177-30 at 4. But in its early assessment, the RFP Team", "paragraph_id": "para_90" }, { "text": "also recognized that Russell did have a few “downside[s]”: their", "paragraph_id": "para_91" }, { "text": "“pricing was on the high end,” they mandated that at least 75% of", "paragraph_id": "para_92" }, { "text": "Plan fund offerings be Russell funds, and they required engaging a", "paragraph_id": "para_93" }, { "text": "third-party recordkeeping service provider. Id.", "paragraph_id": "para_94" }, { "text": "Meanwhile, the Investment Committee considered “various", "paragraph_id": "para_95" }, { "text": "[TDF] offerings, including historical returns, diversification strate-", "paragraph_id": "para_96" }, { "text": "gies, management strategies[,] and expense ratios” to add to the", "paragraph_id": "para_97" }, { "text": "Plan’s investment menu during the pendency of the RFP process.", "paragraph_id": "para_98" }, { "text": "1 At the time, Royal Caribbean’s retirement scheme included a Pension Plan", "paragraph_id": "para_99" }, { "text": "and a 401(k) Plan. In December 2015, the Plans were merged into a single", "paragraph_id": "para_100" }, { "text": "401(k) Plan. The distinction between the two plans is not relevant to this ap-", "paragraph_id": "para_101" }, { "text": "peal. For simplicity, we refer to Royal Caribbean’s retirement scheme as the", "paragraph_id": "para_102" }, { "text": "singular “Plan.”", "paragraph_id": "para_103" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 4 of 14", "paragraph_id": "para_104" }, { "text": "25-10692 Opinion of the Court 5", "paragraph_id": "para_105" }, { "text": "Doc. 177-6 at 3. The Committee “resolved to add the Vanguard", "paragraph_id": "para_106" }, { "text": "[TDF] . . . to the Plan portfolio” and set the Vanguard TDF as “the", "paragraph_id": "para_107" }, { "text": "Plan’s default fund.” Id.", "paragraph_id": "para_108" }, { "text": "In August 2014, Russell gave an in-person presentation to", "paragraph_id": "para_109" }, { "text": "the Committee. The presentation highlighted the Russell TDF se-", "paragraph_id": "para_110" }, { "text": "ries’ distinguishing characteristics, including its “to” glidepath and", "paragraph_id": "para_111" }, { "text": "its bias towards investing in emerging markets and real assets rela-", "paragraph_id": "para_112" }, { "text": "tive to its competitors, which tended to be more heavily invested", "paragraph_id": "para_113" }, { "text": "in U.S. equities. Russell also submitted follow up information to", "paragraph_id": "para_114" }, { "text": "the Committee, including historical returns for the funds in Rus-", "paragraph_id": "para_115" }, { "text": "sell’s proposed investment menu lineup, which compared the", "paragraph_id": "para_116" }, { "text": "funds’ performance to composite benchmarks.", "paragraph_id": "para_117" }, { "text": "The Investment Committee subsequently replaced the Van-", "paragraph_id": "para_118" }, { "text": "guard TDF series with the Russell TDF series. And in September", "paragraph_id": "para_119" }, { "text": "2015, Royal Caribbean and Russell officially entered into an Invest-", "paragraph_id": "para_120" }, { "text": "ment Management Agreement.", "paragraph_id": "para_121" }, { "text": "According to Johnson, the Investment Committee made a", "paragraph_id": "para_122" }, { "text": "very bad decision. The Russell TDFs never had more than 12 cli-", "paragraph_id": "para_123" }, { "text": "ents and had lost their two largest clients to the Vanguard TDFs in", "paragraph_id": "para_124" }, { "text": "2014, the year before Royal Caribbean’s decision to move from", "paragraph_id": "para_125" }, { "text": "Vanguard to Russell. Johnson’s expert testified that, at the time of", "paragraph_id": "para_126" }, { "text": "this decision, the Russell TDFs “had inferior characteristics with re-", "paragraph_id": "para_127" }, { "text": "spect to the commonly used risk, return, and risk-adjusted return", "paragraph_id": "para_128" }, { "text": "metrics.” Doc. 186-6 at 5. Adjusting for the risk of the Russell TDF", "paragraph_id": "para_129" }, { "text": "funds since their inception, “the risk-adjusted returns for Russell", "paragraph_id": "para_130" }, { "text": "[we]re lower than that for each of the corresponding vintage", "paragraph_id": "para_131" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 5 of 14", "paragraph_id": "para_132" }, { "text": "6 Opinion of the Court 25-10692", "paragraph_id": "para_133" }, { "text": "funds.” Id. at 7. Finally, as of December 2014, Morningstar had", "paragraph_id": "para_134" }, { "text": "rated the “Russell LifePoints Target Date Series” (Russell’s retail", "paragraph_id": "para_135" }, { "text": "mutual fund TDF, which is allegedly similar to the Russell TDF", "paragraph_id": "para_136" }, { "text": "series that was included in the Plan) with a “[n]egative” rating. Doc.", "paragraph_id": "para_137" }, { "text": "186-12 at 2.", "paragraph_id": "para_138" }, { "text": "From 2015 to 2019 (when Royal Caribbean removed the", "paragraph_id": "para_139" }, { "text": "Russell TDF series from the investment menu), the Russell TDF", "paragraph_id": "para_140" }, { "text": "underperformed the Vanguard TDF (which it replaced) and the", "paragraph_id": "para_141" }, { "text": "American Funds TDF (which eventually replaced the Russell", "paragraph_id": "para_142" }, { "text": "TDF). In fact, comparing the Russell TDF with the legacy Van-", "paragraph_id": "para_143" }, { "text": "guard TDF and the replacement American Funds TDF, the Russell", "paragraph_id": "para_144" }, { "text": "TDF underperformed, on an annualized basis, by an average of", "paragraph_id": "para_145" }, { "text": "1.51% and 2.12%, respectively, from October 2015 until May 2019.", "paragraph_id": "para_146" }, { "text": "During that same period, the Russell TDF also underperformed its", "paragraph_id": "para_147" }, { "text": "composite benchmark, ranging from 0.38% to 0.97% annual under-", "paragraph_id": "para_148" }, { "text": "performance, for an asset-weighted average underperformance of", "paragraph_id": "para_149" }, { "text": "0.71%.", "paragraph_id": "para_150" }, { "text": "Within the first few years of the Royal Caribbean–Russell", "paragraph_id": "para_151" }, { "text": "relationship, Russell recognized Royal Caribbean’s frustration with", "paragraph_id": "para_152" }, { "text": "the Russell TDF series’ performance. For example, in an internal", "paragraph_id": "para_153" }, { "text": "2017 email, Russell executive Stacey Bro stated that, “based on", "paragraph_id": "para_154" }, { "text": "longer-term historical peer relative performance [of the Russell", "paragraph_id": "para_155" }, { "text": "TDF series],” Royal Caribbean may “think they have made a bad", "paragraph_id": "para_156" }, { "text": "fiduciary decision.” Doc. 186-36 at 2. Similarly, in another internal", "paragraph_id": "para_157" }, { "text": "2017 email, Russell’s Director of Institutional Investment Solu-", "paragraph_id": "para_158" }, { "text": "tions, Lynn Pfeiffer, noted that other clients were moving away", "paragraph_id": "para_159" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 6 of 14", "paragraph_id": "para_160" }, { "text": "25-10692 Opinion of the Court 7", "paragraph_id": "para_161" }, { "text": "from the Russell TDF because “as a fiduciary it is hard to go with", "paragraph_id": "para_162" }, { "text": "worse numbers and higher fees.” Doc. 186-68 at 3. And finally, an", "paragraph_id": "para_163" }, { "text": "internal 2018 strategy presentation to Russell executives specified", "paragraph_id": "para_164" }, { "text": "that Russell’s “fees [were] now high relative to peers.” Doc. 191-9", "paragraph_id": "para_165" }, { "text": "at 5.", "paragraph_id": "para_166" }, { "text": "In April 2019, Royal Caribbean terminated Russell’s Invest-", "paragraph_id": "para_167" }, { "text": "ment Management Agreement. And in May 2019, the Committee", "paragraph_id": "para_168" }, { "text": "replaced the Russell TDF series with the American Funds TDF se-", "paragraph_id": "para_169" }, { "text": "ries.", "paragraph_id": "para_170" }, { "text": "Johnson, a participant of the Plan who invested in the Rus-", "paragraph_id": "para_171" }, { "text": "sell TDF series, on behalf of a class of similarly situated plaintiffs,", "paragraph_id": "para_172" }, { "text": "sued Royal Caribbean and Russell for breaching “ERISA’s strict fi-", "paragraph_id": "para_173" }, { "text": "duciary standards.” Doc. 31 at 26. As relevant here, she alleged that", "paragraph_id": "para_174" }, { "text": "Royal Caribbean imprudently selected Russell as the Plan’s invest-", "paragraph_id": "para_175" }, { "text": "ment manager, failed to monitor the Plan’s investment menu and", "paragraph_id": "para_176" }, { "text": "the Russell TDF series’ performance, and failed to monitor the In-", "paragraph_id": "para_177" }, { "text": "vestment Committee. She specifically claimed that the Russell", "paragraph_id": "para_178" }, { "text": "TDF series’ underperformance, “to” glidepath selection, and high", "paragraph_id": "para_179" }, { "text": "fees relative to other TDFs demonstrated that it was an objectively", "paragraph_id": "para_180" }, { "text": "bad investment.", "paragraph_id": "para_181" }, { "text": "Following discovery, Royal Caribbean and Russell both filed", "paragraph_id": "para_182" }, { "text": "motions for summary judgment, which the district court granted.", "paragraph_id": "para_183" }, { "text": "In granting summary judgment for Royal Caribbean, the district", "paragraph_id": "para_184" }, { "text": "court reasoned that an ERISA plaintiff must identify comparator", "paragraph_id": "para_185" }, { "text": "funds to establish objective imprudence through an “apples-to-ap-", "paragraph_id": "para_186" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 7 of 14", "paragraph_id": "para_187" }, { "text": "8 Opinion of the Court 25-10692", "paragraph_id": "para_188" }, { "text": "ples” comparison. Doc. 273 at 16. It then held that Johnson had re-", "paragraph_id": "para_189" }, { "text": "lied on “[i]mproper [c]omparators,” such as the Vanguard and", "paragraph_id": "para_190" }, { "text": "American funds, id., that Russell’s custom TDF benchmark was the", "paragraph_id": "para_191" }, { "text": "only “[p]roper [c]omparator,” and that the court did not need to", "paragraph_id": "para_192" }, { "text": "consider any “[o]ther [e]vidence of [a]lleged [o]bjective [i]mpru-", "paragraph_id": "para_193" }, { "text": "dence,” id. at 19–20.", "paragraph_id": "para_194" }, { "text": "Johnson timely appealed. While the appeal was pending,", "paragraph_id": "para_195" }, { "text": "Johnson and Russell reached a settlement and jointly moved for", "paragraph_id": "para_196" }, { "text": "voluntary dismissal of the appeal, which we granted. Royal Carib-", "paragraph_id": "para_197" }, { "text": "bean Cruises Ltd. and Royal Caribbean Cruises Ltd.’s Investment", "paragraph_id": "para_198" }, { "text": "Committee (collectively, Royal Caribbean) are the only remaining", "paragraph_id": "para_199" }, { "text": "appellees.", "paragraph_id": "para_200" }, { "text": "II.", "paragraph_id": "para_201" }, { "text": "We review the district court’s decision to grant summary", "paragraph_id": "para_202" }, { "text": "judgment de novo. Baker v. Upson Reg’l Med. Ctr., 94 F.4th 1312,", "paragraph_id": "para_203" }, { "text": "1316–17 (11th Cir. 2024).", "paragraph_id": "para_204" }, { "text": "III.", "paragraph_id": "para_205" }, { "text": "ERISA requires fiduciaries administering employee benefit", "paragraph_id": "para_206" }, { "text": "plans to prudently investigate, choose, and monitor investments.", "paragraph_id": "para_207" }, { "text": "29 U.S.C. §§ 1104(a)(1)(B), 1109(a). We recently addressed how a", "paragraph_id": "para_208" }, { "text": "participant in a plan can prove a fiduciary breach under ERISA’s", "paragraph_id": "para_209" }, { "text": "section 1109(a). See Pizarro v. Home Depot, Inc., 111 F.4th 1165 (11th", "paragraph_id": "para_210" }, { "text": "Cir. 2024). In Pizarro, we held that “liability turns not only on an", "paragraph_id": "para_211" }, { "text": "imprudent process, but also on that process resulting in an impru-", "paragraph_id": "para_212" }, { "text": "dent investment.” Id. at 1176. In other words, to establish fiduciary", "paragraph_id": "para_213" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 8 of 14", "paragraph_id": "para_214" }, { "text": "25-10692 Opinion of the Court 9", "paragraph_id": "para_215" }, { "text": "liability, we held that a plaintiff must demonstrate (1) procedural", "paragraph_id": "para_216" }, { "text": "imprudence (i.e., “imprudent process”) and (2) loss causation (i.e.,", "paragraph_id": "para_217" }, { "text": "“resulting in an imprudent investment”). Id.", "paragraph_id": "para_218" }, { "text": "Loss causation, not imprudent process, is the focus for us to-", "paragraph_id": "para_219" }, { "text": "day. Loss causation requires a plaintiff to prove that an investment", "paragraph_id": "para_220" }, { "text": "was not “objectively prudent.” Id. An investment is not objectively", "paragraph_id": "para_221" }, { "text": "prudent, we have held, when it falls “outside the ‘range of reason-", "paragraph_id": "para_222" }, { "text": "able judgments a fiduciary may make based on her experience and", "paragraph_id": "para_223" }, { "text": "expertise,’ such that a hypothetical prudent fiduciary in the same", "paragraph_id": "para_224" }, { "text": "circumstances as the defendant, armed with the information that a", "paragraph_id": "para_225" }, { "text": "proper evaluation would have yielded, would not (or could not)", "paragraph_id": "para_226" }, { "text": "have made the same choice.” Id. (quoting Hughes v. Nw. Univ., 595", "paragraph_id": "para_227" }, { "text": "U.S. 170, 177 (2022)).", "paragraph_id": "para_228" }, { "text": "ERISA plaintiffs often rely on comparisons to demonstrate", "paragraph_id": "para_229" }, { "text": "objective imprudence by presenting evidence that a challenged in-", "paragraph_id": "para_230" }, { "text": "vestment was inferior to an alternative that a fiduciary could have", "paragraph_id": "para_231" }, { "text": "chosen instead. See id. at 1178; see also GIW Indus., Inc. v. Trevor,", "paragraph_id": "para_232" }, { "text": "Stewart, Burton & Jacobsen, Inc., 895 F.2d 729, 733 (11th Cir. 1990).", "paragraph_id": "para_233" }, { "text": "When assessing this kind of comparator evidence, we have ex-", "paragraph_id": "para_234" }, { "text": "plained that “whether an investment is objectively imprudent must", "paragraph_id": "para_235" }, { "text": "be assessed against the actions of a hypothetical prudent fiduciary", "paragraph_id": "para_236" }, { "text": "with ‘like aims.’” Pizarro, 111 F.4th at 1181 (quoting 29 U.S.C. §", "paragraph_id": "para_237" }, { "text": "1104(a)(1)(B)). So, if a fund was chosen “because it was conserva-", "paragraph_id": "para_238" }, { "text": "tive,” then its performance should be “benchmarked [] against a", "paragraph_id": "para_239" }, { "text": "conservative metric,” not “more aggressive benchmarks.” Id.", "paragraph_id": "para_240" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 9 of 14", "paragraph_id": "para_241" }, { "text": "10 Opinion of the Court 25-10692", "paragraph_id": "para_242" }, { "text": "The parties in this case fundamentally disagree about the", "paragraph_id": "para_243" }, { "text": "role of this kind of comparator evidence. Johnson argues that she", "paragraph_id": "para_244" }, { "text": "need not provide comparator evidence to demonstrate objective", "paragraph_id": "para_245" }, { "text": "imprudence, but she also argues that she has done so by comparing", "paragraph_id": "para_246" }, { "text": "the Russell TDF funds to the funds they replaced, the Vanguard", "paragraph_id": "para_247" }, { "text": "TDF series, and the funds that ultimately replaced them, the Amer-", "paragraph_id": "para_248" }, { "text": "ican TDF series. Royal Caribbean responds that comparator evi-", "paragraph_id": "para_249" }, { "text": "dence is, in fact, required to establish objective imprudence, and", "paragraph_id": "para_250" }, { "text": "that Johnson’s comparator evidence does not satisfy the require-", "paragraph_id": "para_251" }, { "text": "ment. It points out that the Russell, Vanguard, and American TDFs", "paragraph_id": "para_252" }, { "text": "are different—they employed different investment strategies,", "paragraph_id": "para_253" }, { "text": "glidepaths, and asset allocations—rendering them inadequate ap-", "paragraph_id": "para_254" }, { "text": "ples-to-apples comparators. Accordingly, Royal Caribbean con-", "paragraph_id": "para_255" }, { "text": "cludes that Johnson failed to establish loss causation.", "paragraph_id": "para_256" }, { "text": "We agree with Johnson that a plaintiff is not necessarily re-", "paragraph_id": "para_257" }, { "text": "quired to identify a comparable investment to establish loss causa-", "paragraph_id": "para_258" }, { "text": "tion. The objective imprudence of an individual investment turns", "paragraph_id": "para_259" }, { "text": "on whether it falls “outside the range of reasonable judgments a", "paragraph_id": "para_260" }, { "text": "fiduciary may make based on her experience and expertise.” Id. at", "paragraph_id": "para_261" }, { "text": "1176 (citation modified). Although comparator evidence may be", "paragraph_id": "para_262" }, { "text": "relevant to establish loss causation, we cannot say it is always nec-", "paragraph_id": "para_263" }, { "text": "essary.", "paragraph_id": "para_264" }, { "text": "Instead, we expect the facts relevant to objective prudence", "paragraph_id": "para_265" }, { "text": "to vary from case to case. After all, the determination of whether", "paragraph_id": "para_266" }, { "text": "an individual investment is objectively prudent “will necessarily be", "paragraph_id": "para_267" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 10 of 14", "paragraph_id": "para_268" }, { "text": "25-10692 Opinion of the Court 11", "paragraph_id": "para_269" }, { "text": "context specific.” Hughes, 595 U.S. at 177 (quoting Fifth Third Ban-", "paragraph_id": "para_270" }, { "text": "corp v. Dudenhoeffer, 573 U.S. 409, 425 (2014)). And, as with many", "paragraph_id": "para_271" }, { "text": "other context-specific inquiries, the factfinder will be required to", "paragraph_id": "para_272" }, { "text": "consider and weigh competing evidence. See, e.g., Daubert v. Merrell", "paragraph_id": "para_273" }, { "text": "Dow Pharms., Inc., 509 U.S. 579, 593 (1993); United States v. Robelo-", "paragraph_id": "para_274" }, { "text": "Galo, 166 F.4th 1311, 1316 (11th Cir. 2026). To that end, in Pizarro,", "paragraph_id": "para_275" }, { "text": "we identified various types of evidence that can inform whether an", "paragraph_id": "para_276" }, { "text": "investment falls “outside the range of reasonable judgments,” 111", "paragraph_id": "para_277" }, { "text": "F.4th at 1176 (citation modified), to assess its objective prudence,", "paragraph_id": "para_278" }, { "text": "grouping them in qualitative and quantitative buckets, see id. at", "paragraph_id": "para_279" }, { "text": "1179–82.", "paragraph_id": "para_280" }, { "text": "We reaffirm that approach here. Qualitatively, a factfinder", "paragraph_id": "para_281" }, { "text": "may look to whether the fund was a “popular option[] offered by", "paragraph_id": "para_282" }, { "text": "other employers’ plans of comparable size and complexity” and", "paragraph_id": "para_283" }, { "text": "whether it “received positive ratings from industry analysts.” Id. at", "paragraph_id": "para_284" }, { "text": "1180. And, quantitatively, a factfinder may weigh the fund’s fees", "paragraph_id": "para_285" }, { "text": "and performance relative to appropriate contemporaneous peers", "paragraph_id": "para_286" }, { "text": "and benchmarks. Id. at 1178, 1180–82. The quantitative evaluation,", "paragraph_id": "para_287" }, { "text": "though, may be applied only to “apples-to-apples comparison[s]”", "paragraph_id": "para_288" }, { "text": "to control for differences across the investments’ risk profiles, strat-", "paragraph_id": "para_289" }, { "text": "egies, asset allocations, and the like. Id. at 1180. Controlling for", "paragraph_id": "para_290" }, { "text": "these variables ensures that any historical underperformance is not", "paragraph_id": "para_291" }, { "text": "simply a function of the fund pursuing a different investment ob-", "paragraph_id": "para_292" }, { "text": "jective, but, instead, reflects a fund’s real economic inferiority rela-", "paragraph_id": "para_293" }, { "text": "tive to the alternative options that would have been available to a", "paragraph_id": "para_294" }, { "text": "“prudent fiduciary with ‘like aims.’” Id. at 1181 (quoting 29 U.S.C.", "paragraph_id": "para_295" }, { "text": "§ 1104(a)(1)(B)). Considered together, this non-exhaustive list of", "paragraph_id": "para_296" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 11 of 14", "paragraph_id": "para_297" }, { "text": "12 Opinion of the Court 25-10692", "paragraph_id": "para_298" }, { "text": "evidence provides a helpful framework to assess an investment’s", "paragraph_id": "para_299" }, { "text": "objective prudence.", "paragraph_id": "para_300" }, { "text": "The important point is that the law imposes no mandate that", "paragraph_id": "para_301" }, { "text": "a plaintiff prove objective imprudence through apples-to-apples", "paragraph_id": "para_302" }, { "text": "comparator evidence. In some circumstances, a context-specific in-", "paragraph_id": "para_303" }, { "text": "quiry may favor either qualitative or quantitative evidence, and a", "paragraph_id": "para_304" }, { "text": "plaintiff does not need both. See, e.g., GIW Indus., 895 F.2d at 733", "paragraph_id": "para_305" }, { "text": "(concluding that a fiduciary caused losses to the fund without a", "paragraph_id": "para_306" }, { "text": "quantitative analysis); In re Unisys Sav. Plan Litig., 74 F.3d 420, 437", "paragraph_id": "para_307" }, { "text": "(3d Cir. 1996) (concluding that a reasonable factfinder could find", "paragraph_id": "para_308" }, { "text": "the fiduciary caused losses to the plan without a quantitative anal-", "paragraph_id": "para_309" }, { "text": "ysis). So, even when a plaintiff lacks qualitative evidence, he may", "paragraph_id": "para_310" }, { "text": "still establish loss causation by reference to a meaningful bench-", "paragraph_id": "para_311" }, { "text": "mark that demonstrates obvious underperformance. And, even", "paragraph_id": "para_312" }, { "text": "when a plaintiff lacks a proper apples-to-apples comparison, he may", "paragraph_id": "para_313" }, { "text": "still point to a fund’s widespread unpopularity and negative indus-", "paragraph_id": "para_314" }, { "text": "try ratings as evidence of its objective imprudence. After all, some", "paragraph_id": "para_315" }, { "text": "of the most objectively imprudent investments will lack an apples-", "paragraph_id": "para_316" }, { "text": "to-apples comparison precisely because they are such objectively", "paragraph_id": "para_317" }, { "text": "bad fiduciary decisions.", "paragraph_id": "para_318" }, { "text": "Our approach to comparator evidence is consistent with", "paragraph_id": "para_319" }, { "text": "those of other circuits. The Sixth Circuit has held that comparator", "paragraph_id": "para_320" }, { "text": "evidence may be used “to show a fund acted imprudently” but has", "paragraph_id": "para_321" }, { "text": "stopped short of deciding that comparator evidence is necessary to", "paragraph_id": "para_322" }, { "text": "plead a fiduciary violation. Smith v. CommonSpirit Health, 37 F.4th", "paragraph_id": "para_323" }, { "text": "1160, 1166 (6th Cir. 2022). Likewise, the Third Circuit has held that", "paragraph_id": "para_324" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 12 of 14", "paragraph_id": "para_325" }, { "text": "25-10692 Opinion of the Court 13", "paragraph_id": "para_326" }, { "text": "a court must consider a variety of factors before weighing in on the", "paragraph_id": "para_327" }, { "text": "prudence of a particular investment. In re Quest Diagnostics ERISA", "paragraph_id": "para_328" }, { "text": "Litig., 179 F.4th 217, 225 (3d Cir. 2026) (evaluating whether the plan", "paragraph_id": "para_329" }, { "text": "fiduciaries consulted advisors, understood the funds’ underlying", "paragraph_id": "para_330" }, { "text": "merits, and employed a reasonable process). As both of our sister", "paragraph_id": "para_331" }, { "text": "circuits have recognized, the prudence inquiry is fact-intensive.", "paragraph_id": "para_332" }, { "text": "We, likewise, do not approach this question with a “mechanical", "paragraph_id": "para_333" }, { "text": "checklist,” recognizing that courts must consider all the available", "paragraph_id": "para_334" }, { "text": "evidence to evaluate the objective prudence of a particular invest-", "paragraph_id": "para_335" }, { "text": "ment. Id.", "paragraph_id": "para_336" }, { "text": "Turning back to this case, Johnson argues that the decision", "paragraph_id": "para_337" }, { "text": "to abandon the Vanguard TDFs in favor of the Russell TDFs is the", "paragraph_id": "para_338" }, { "text": "kind of objectively imprudent decision that needs no apples-to-ap-", "paragraph_id": "para_339" }, { "text": "ples comparison. To be sure, it is undisputed that, at the time the", "paragraph_id": "para_340" }, { "text": "Russell TDFs were added to the plan, their returns exceeded a cus-", "paragraph_id": "para_341" }, { "text": "tom benchmark. And, during the four-year class period, the Russell", "paragraph_id": "para_342" }, { "text": "TDFs only slightly underperformed the custom benchmark; their", "paragraph_id": "para_343" }, { "text": "“asset-weighted average underperformance [was] 0.71%.” Doc.", "paragraph_id": "para_344" }, { "text": "191-4 at 5. But the mere fact that the Russell funds were within", "paragraph_id": "para_345" }, { "text": "striking distance of their own custom benchmark does not answer", "paragraph_id": "para_346" }, { "text": "Johnson’s theory of objective imprudence—that the Russell TDFs’", "paragraph_id": "para_347" }, { "text": "unique features, which were also baked into the custom bench-", "paragraph_id": "para_348" }, { "text": "mark, are what made them an objectively imprudent investment", "paragraph_id": "para_349" }, { "text": "to begin with. See, e.g., Doc. 191-3 at 22 (“Russell dodges the proper", "paragraph_id": "para_350" }, { "text": "question: whether those very characteristics of the Russell TDFs", "paragraph_id": "para_351" }, { "text": "made them an imprudent investment for the Plan given Royal Car-", "paragraph_id": "para_352" }, { "text": "ibbean’s investment objectives”).", "paragraph_id": "para_353" }, { "text": "USCA11 Case: 25-10692 Document: 76-1 Date Filed: 08/17/2026 Page: 13 of 14", "paragraph_id": "para_354" }, { "text": "14 Opinion of the Court 25-10692", "paragraph_id": "para_355" }, { "text": "The touchstone for objective imprudence is that a chal-", "paragraph_id": "para_356" }, { "text": "lenged investment “must be assessed against the actions of a hypo-", "paragraph_id": "para_357" }, { "text": "thetical prudent fiduciary with like aims.” Pizarro, 111 F.4th at 1181", "paragraph_id": "para_358" }, { "text": "(citation modified). We make no determination about whether the", "paragraph_id": "para_359" }, { "text": "record warrants summary judgment under the appropriate stand-", "paragraph_id": "para_360" }, { "text": "ard.", "paragraph_id": "para_361" }, { "text": "IV.", "paragraph_id": "para_362" }, { "text": "For the foregoing reasons, the decision of the district court", "paragraph_id": "para_363" }, { "text": "is REVERSED. 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