The Federation of Americans for Consumer Choice and several independent insurance agents are suing the Labor Department over its new fiduciary rule.
The lawsuit, filed Thursday in the U.S. District Court for the Eastern District of Texas, in Tyler, is the first against Labor's new fiduciary rule, which the department released last week.
FACC — an advocacy group for independent insurance distributors — is represented by the law firm Figari and Davenport, which also is representing FACC in an earlier lawsuit filed in February 2022 against the DOL that challenges the department's 2020 guidance on who is considered a fiduciary when giving rollover advice.
In its new suit, FACC said that it "will seek a preliminary injunction asking the court to stop the new rule from taking effect during the pendency of the case" against Labor's PTE 2020-02 on rollover advice.
PTE 2020-02, which was partly overturned by a Florida district court decision, still faces a challenge in court by FACC, which filed its challenge in the U.S. District Court for the Northern District of Texas.
The federation's 2022 case asked the court to vacate PTE 2020-02 in its entirety and stop DOL from implementing or enforcing it in any manner.
Acting Labor Secretary Julie Su told House lawmakers on Wednesday that Labor's new rule can withstand legal challenges.
Details on New Suit
FACC's new suit states that Labor "promulgated a new rule that purports to redefine and significantly broaden who is considered an 'investment advice fiduciary" under the Employee Retirement Income Security Act.
