The judge presiding over the case against Scottrade brought by Secretary of the Commonwealth William Galvin for violating the Labor Department’s fiduciary rule has remanded the case back to a state administrative proceeding — as Galvin requested.
Judge Nathaniel Gorton, the U.S. District Judge for the U.S. District Court for the District of Massachusetts, stated in his Aug. 16 ruling that the Employee Retirement Income Security Act “does not completely preempt either claim in the administrative complaint and neither claim ‘arises under’ ERISA. This Court lacks subject matter jurisdiction and plaintiff’s motion to remand will be allowed.”
Galvin and Scottrade have been battling over whether the case should be heard in federal court. Galvin has been seeking to have it heard in state administrative proceeding.