Ann Johnson v. Russell Investments Trust Company
CourtCourt of Appeals for the Eleventh Circuit
Date FiledAugust 17, 2026
Docket25-10692
StatusPublished
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Full Opinion
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FOR PUBLICATION
In the
United States Court of Appeals
For the Eleventh Circuit
____________________
No. 25-10692
____________________
ANN JOHNSON,
as the representative of a class of similarly
situated persons, and on behalf of Royal
Caribbean Cruises Ltd Retirement Savings Plan,
Plaintiff-Appellant,
versus
RUSSELL INVESTMENT MANAGEMENT, LLC,
RUSSELL INVESTMENTS TRUST COMPANY,
f.k.a. Russell Trust Company,
Defendants,
ROYAL CARIBBEAN CRUISES LTD.,
ROYAL CARIBBEAN CRUISES LTD.,
Defendants-Appellees.
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2 Opinion of the Court 25-10692
____________________
Appeal from the United States District Court
for the Southern District of Florida
D.C. Docket No. 1:22-cv-21735-RNS
____________________
Before JILL PRYOR, LUCK, and BRASHER, Circuit Judges.
BRASHER, Circuit Judge:
This appeal is about whether Royal Caribbean breached its
fiduciary duty under the Employee Retirement Income Security
Act. Ann Johnson, on behalf of a class of similarly situated plaintiffs,
complained that Royal Caribbean breached its obligation to pru-
dently select investments for its employee retirement plan. Specif-
ically, she alleged that Royal Caribbean’s decision to replace Van-
guard Target Date Funds with Russell Target Date Funds in the
plan’s menu of investment options caused the class members’
losses because the investment was objectively imprudent.
The district court granted summary judgment because it
concluded that Johnson was obligated to, but did not, submit evi-
dence that the Russell Target Date Funds was objectively impru-
dent compared to another target date fund that had the same in-
vestment strategy and risk profile. We believe the district court
erred. An ERISA plaintiff need not identify an apples-to-apples
comparison to establish objective imprudence in every case. In this
case, Johnson argues that the very features that distinguish the Rus-
sell Target Date Funds from otherwise comparable funds are what
made the Russell funds an objectively imprudent investment. Be-
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25-10692 Opinion of the Court 3
cause a plaintiff may, but need not, rely on apples-to-apples com-
parator evidence at summary judgment in a breach of fiduciary
duty case like this one, we reverse and remand for the district court
to consider the full record on the issue of objective imprudence.
I.
We will start with some background information about re-
tirement plans and target date funds. A self-directed retirement
plan provides a menu of investment options from which partici-
pants can choose to invest their funds. The investment menu is set
by the plan’s sponsor—here, Royal Caribbean. Many plans, like the
one in this case, offer target date funds, or TDFs, as an option. A
TDF is an investment vehicle that simplifies retirement planning
by allowing investors to invest all their savings in a single diversi-
fied fund that changes its asset allocation over time based on a tar-
get retirement date, rather than actively managing many different
investments across their portfolio. Consistent with investing best
practices, TDFs adjust their asset allocation to become more con-
servative as the investor’s retirement date (i.e., the fund’s “target
date”) approaches. A TDF’s approach to risk is called its
“glidepath.” Some TDFs use “to” glidepaths (i.e., assets are most
conservatively allocated at the target date—the most conservative
approach), while other TDFs employ “through” glidepaths (i.e., as-
sets reach the most conservative allocation some period of years
beyond the target date—a less conservative approach).
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Now, with the stage set, we move to the facts leading to this
dispute. In 2014, Royal Caribbean’s Investment Committee de-
cided to restructure its employee retirement plan. 1 To that end, the
Committee established a Request for Proposal Team to solicit
RFPs from investment companies for Plan advisory and manage-
ment services. Eleven prospective vendors submitted proposals,
and Royal Caribbean’s outside counsel prepared a memorandum
to evaluate each one. Although the memorandum did not list Rus-
sell among the initial top four contenders, it noted that “Russell’s
strength is their expertise in providing consulting services and in-
vestment advice.” Doc 177-29 at 5. Upon reviewing the memo, the
RFP Team selected Russell as one of its four finalists because of its
“[s]trong expertise in providing consulting service and investment
advice.” Doc. 177-30 at 4. But in its early assessment, the RFP Team
also recognized that Russell did have a few “downside[s]”: their
“pricing was on the high end,” they mandated that at least 75% of
Plan fund offerings be Russell funds, and they required engaging a
third-party recordkeeping service provider. Id.
Meanwhile, the Investment Committee considered “various
[TDF] offerings, including historical returns, diversification strate-
gies, management strategies[,] and expense ratios” to add to the
Plan’s investment menu during the pendency of the RFP process.
1 At the time, Royal Caribbean’s retirement scheme included a Pension Plan
and a 401(k) Plan. In December 2015, the Plans were merged into a single
401(k) Plan. The distinction between the two plans is not relevant to this ap-
peal. For simplicity, we refer to Royal Caribbean’s retirement scheme as the
singular “Plan.”
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Doc. 177-6 at 3. The Committee “resolved to add the Vanguard
[TDF] . . . to the Plan portfolio” and set the Vanguard TDF as “the
Plan’s default fund.” Id.
In August 2014, Russell gave an in-person presentation to
the Committee. The presentation highlighted the Russell TDF se-
ries’ distinguishing characteristics, including its “to” glidepath and
its bias towards investing in emerging markets and real assets rela-
tive to its competitors, which tended to be more heavily invested
in U.S. equities. Russell also submitted follow up information to
the Committee, including historical returns for the funds in Rus-
sell’s proposed investment menu lineup, which compared the
funds’ performance to composite benchmarks.
The Investment Committee subsequently replaced the Van-
guard TDF series with the Russell TDF series. And in September
2015, Royal Caribbean and Russell officially entered into an Invest-
ment Management Agreement.
According to Johnson, the Investment Committee made a
very bad decision. The Russell TDFs never had more than 12 cli-
ents and had lost their two largest clients to the Vanguard TDFs in
2014, the year before Royal Caribbean’s decision to move from
Vanguard to Russell. Johnson’s expert testified that, at the time of
this decision, the Russell TDFs “had inferior characteristics with re-
spect to the commonly used risk, return, and risk-adjusted return
metrics.” Doc. 186-6 at 5. Adjusting for the risk of the Russell TDF
funds since their inception, “the risk-adjusted returns for Russell
[we]re lower than that for each of the corresponding vintage
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funds.” Id. at 7. Finally, as of December 2014, Morningstar had
rated the “Russell LifePoints Target Date Series” (Russell’s retail
mutual fund TDF, which is allegedly similar to the Russell TDF
series that was included in the Plan) with a “[n]egative” rating. Doc.
186-12 at 2.
From 2015 to 2019 (when Royal Caribbean removed the
Russell TDF series from the investment menu), the Russell TDF
underperformed the Vanguard TDF (which it replaced) and the
American Funds TDF (which eventually replaced the Russell
TDF). In fact, comparing the Russell TDF with the legacy Van-
guard TDF and the replacement American Funds TDF, the Russell
TDF underperformed, on an annualized basis, by an average of
1.51% and 2.12%, respectively, from October 2015 until May 2019.
During that same period, the Russell TDF also underperformed its
composite benchmark, ranging from 0.38% to 0.97% annual under-
performance, for an asset-weighted average underperformance of
0.71%.
Within the first few years of the Royal Caribbean–Russell
relationship, Russell recognized Royal Caribbean’s frustration with
the Russell TDF series’ performance. For example, in an internal
2017 email, Russell executive Stacey Bro stated that, “based on
longer-term historical peer relative performance [of the Russell
TDF series],” Royal Caribbean may “think they have made a bad
fiduciary decision.” Doc. 186-36 at 2. Similarly, in another internal
2017 email, Russell’s Director of Institutional Investment Solu-
tions, Lynn Pfeiffer, noted that other clients were moving away
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25-10692 Opinion of the Court 7
from the Russell TDF because “as a fiduciary it is hard to go with
worse numbers and higher fees.” Doc. 186-68 at 3. And finally, an
internal 2018 strategy presentation to Russell executives specified
that Russell’s “fees [were] now high relative to peers.” Doc. 191-9
at 5.
In April 2019, Royal Caribbean terminated Russell’s Invest-
ment Management Agreement. And in May 2019, the Committee
replaced the Russell TDF series with the American Funds TDF se-
ries.
Johnson, a participant of the Plan who invested in the Rus-
sell TDF series, on behalf of a class of similarly situated plaintiffs,
sued Royal Caribbean and Russell for breaching “ERISA’s strict fi-
duciary standards.” Doc. 31 at 26. As relevant here, she alleged that
Royal Caribbean imprudently selected Russell as the Plan’s invest-
ment manager, failed to monitor the Plan’s investment menu and
the Russell TDF series’ performance, and failed to monitor the In-
vestment Committee. She specifically claimed that the Russell
TDF series’ underperformance, “to” glidepath selection, and high
fees relative to other TDFs demonstrated that it was an objectively
bad investment.
Following discovery, Royal Caribbean and Russell both filed
motions for summary judgment, which the district court granted.
In granting summary judgment for Royal Caribbean, the district
court reasoned that an ERISA plaintiff must identify comparator
funds to establish objective imprudence through an “apples-to-ap-
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8 Opinion of the Court 25-10692
ples” comparison. Doc. 273 at 16. It then held that Johnson had re-
lied on “[i]mproper [c]omparators,” such as the Vanguard and
American funds, id., that Russell’s custom TDF benchmark was the
only “[p]roper [c]omparator,” and that the court did not need to
consider any “[o]ther [e]vidence of [a]lleged [o]bjective [i]mpru-
dence,” id. at 19–20.
Johnson timely appealed. While the appeal was pending,
Johnson and Russell reached a settlement and jointly moved for
voluntary dismissal of the appeal, which we granted. Royal Carib-
bean Cruises Ltd. and Royal Caribbean Cruises Ltd.’s Investment
Committee (collectively, Royal Caribbean) are the only remaining
appellees.
II.
We review the district court’s decision to grant summary
judgment de novo. Baker v. Upson Reg’l Med. Ctr., 94 F.4th 1312,
1316–17 (11th Cir. 2024).
III.
ERISA requires fiduciaries administering employee benefit
plans to prudently investigate, choose, and monitor investments.
29 U.S.C. §§ 1104(a)(1)(B), 1109(a). We recently addressed how a
participant in a plan can prove a fiduciary breach under ERISA’s
section 1109(a). See Pizarro v. Home Depot, Inc., 111 F.4th 1165 (11th
Cir. 2024). In Pizarro, we held that “liability turns not only on an
imprudent process, but also on that process resulting in an impru-
dent investment.” Id. at 1176. In other words, to establish fiduciary
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25-10692 Opinion of the Court 9
liability, we held that a plaintiff must demonstrate (1) procedural
imprudence (i.e., “imprudent process”) and (2) loss causation (i.e.,
“resulting in an imprudent investment”). Id.
Loss causation, not imprudent process, is the focus for us to-
day. Loss causation requires a plaintiff to prove that an investment
was not “objectively prudent.” Id. An investment is not objectively
prudent, we have held, when it falls “outside the ‘range of reason-
able judgments a fiduciary may make based on her experience and
expertise,’ such that a hypothetical prudent fiduciary in the same
circumstances as the defendant, armed with the information that a
proper evaluation would have yielded, would not (or could not)
have made the same choice.” Id. (quoting Hughes v. Nw. Univ., 595
U.S. 170, 177 (2022)).
ERISA plaintiffs often rely on comparisons to demonstrate
objective imprudence by presenting evidence that a challenged in-
vestment was inferior to an alternative that a fiduciary could have
chosen instead. See id. at 1178; see also GIW Indus., Inc. v. Trevor,
Stewart, Burton & Jacobsen, Inc., 895 F.2d 729, 733 (11th Cir. 1990).
When assessing this kind of comparator evidence, we have ex-
plained that “whether an investment is objectively imprudent must
be assessed against the actions of a hypothetical prudent fiduciary
with ‘like aims.’” Pizarro, 111 F.4th at 1181 (quoting 29 U.S.C. §
1104(a)(1)(B)). So, if a fund was chosen “because it was conserva-
tive,” then its performance should be “benchmarked [] against a
conservative metric,” not “more aggressive benchmarks.” Id.
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The parties in this case fundamentally disagree about the
role of this kind of comparator evidence. Johnson argues that she
need not provide comparator evidence to demonstrate objective
imprudence, but she also argues that she has done so by comparing
the Russell TDF funds to the funds they replaced, the Vanguard
TDF series, and the funds that ultimately replaced them, the Amer-
ican TDF series. Royal Caribbean responds that comparator evi-
dence is, in fact, required to establish objective imprudence, and
that Johnson’s comparator evidence does not satisfy the require-
ment. It points out that the Russell, Vanguard, and American TDFs
are different—they employed different investment strategies,
glidepaths, and asset allocations—rendering them inadequate ap-
ples-to-apples comparators. Accordingly, Royal Caribbean con-
cludes that Johnson failed to establish loss causation.
We agree with Johnson that a plaintiff is not necessarily re-
quired to identify a comparable investment to establish loss causa-
tion. The objective imprudence of an individual investment turns
on whether it falls “outside the range of reasonable judgments a
fiduciary may make based on her experience and expertise.” Id. at
1176 (citation modified). Although comparator evidence may be
relevant to establish loss causation, we cannot say it is always nec-
essary.
Instead, we expect the facts relevant to objective prudence
to vary from case to case. After all, the determination of whether
an individual investment is objectively prudent “will necessarily be
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25-10692 Opinion of the Court 11
context specific.” Hughes, 595 U.S. at 177 (quoting Fifth Third Ban-
corp v. Dudenhoeffer, 573 U.S. 409, 425 (2014)). And, as with many
other context-specific inquiries, the factfinder will be required to
consider and weigh competing evidence. See, e.g., Daubert v. Merrell
Dow Pharms., Inc., 509 U.S. 579, 593 (1993); United States v. Robelo-
Galo, 166 F.4th 1311, 1316 (11th Cir. 2026). To that end, in Pizarro,
we identified various types of evidence that can inform whether an
investment falls “outside the range of reasonable judgments,” 111
F.4th at 1176 (citation modified), to assess its objective prudence,
grouping them in qualitative and quantitative buckets, see id. at
1179–82.
We reaffirm that approach here. Qualitatively, a factfinder
may look to whether the fund was a “popular option[] offered by
other employers’ plans of comparable size and complexity” and
whether it “received positive ratings from industry analysts.” Id. at
1180. And, quantitatively, a factfinder may weigh the fund’s fees
and performance relative to appropriate contemporaneous peers
and benchmarks. Id. at 1178, 1180–82. The quantitative evaluation,
though, may be applied only to “apples-to-apples comparison[s]”
to control for differences across the investments’ risk profiles, strat-
egies, asset allocations, and the like. Id. at 1180. Controlling for
these variables ensures that any historical underperformance is not
simply a function of the fund pursuing a different investment ob-
jective, but, instead, reflects a fund’s real economic inferiority rela-
tive to the alternative options that would have been available to a
“prudent fiduciary with ‘like aims.’” Id. at 1181 (quoting 29 U.S.C.
§ 1104(a)(1)(B)). Considered together, this non-exhaustive list of
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evidence provides a helpful framework to assess an investment’s
objective prudence.
The important point is that the law imposes no mandate that
a plaintiff prove objective imprudence through apples-to-apples
comparator evidence. In some circumstances, a context-specific in-
quiry may favor either qualitative or quantitative evidence, and a
plaintiff does not need both. See, e.g., GIW Indus., 895 F.2d at 733
(concluding that a fiduciary caused losses to the fund without a
quantitative analysis); In re Unisys Sav. Plan Litig., 74 F.3d 420, 437
(3d Cir. 1996) (concluding that a reasonable factfinder could find
the fiduciary caused losses to the plan without a quantitative anal-
ysis). So, even when a plaintiff lacks qualitative evidence, he may
still establish loss causation by reference to a meaningful bench-
mark that demonstrates obvious underperformance. And, even
when a plaintiff lacks a proper apples-to-apples comparison, he may
still point to a fund’s widespread unpopularity and negative indus-
try ratings as evidence of its objective imprudence. After all, some
of the most objectively imprudent investments will lack an apples-
to-apples comparison precisely because they are such objectively
bad fiduciary decisions.
Our approach to comparator evidence is consistent with
those of other circuits. The Sixth Circuit has held that comparator
evidence may be used “to show a fund acted imprudently” but has
stopped short of deciding that comparator evidence is necessary to
plead a fiduciary violation. Smith v. CommonSpirit Health, 37 F.4th
1160, 1166 (6th Cir. 2022). Likewise, the Third Circuit has held that
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25-10692 Opinion of the Court 13
a court must consider a variety of factors before weighing in on the
prudence of a particular investment. In re Quest Diagnostics ERISA
Litig., 179 F.4th 217, 225 (3d Cir. 2026) (evaluating whether the plan
fiduciaries consulted advisors, understood the funds’ underlying
merits, and employed a reasonable process). As both of our sister
circuits have recognized, the prudence inquiry is fact-intensive.
We, likewise, do not approach this question with a “mechanical
checklist,” recognizing that courts must consider all the available
evidence to evaluate the objective prudence of a particular invest-
ment. Id.
Turning back to this case, Johnson argues that the decision
to abandon the Vanguard TDFs in favor of the Russell TDFs is the
kind of objectively imprudent decision that needs no apples-to-ap-
ples comparison. To be sure, it is undisputed that, at the time the
Russell TDFs were added to the plan, their returns exceeded a cus-
tom benchmark. And, during the four-year class period, the Russell
TDFs only slightly underperformed the custom benchmark; their
“asset-weighted average underperformance [was] 0.71%.” Doc.
191-4 at 5. But the mere fact that the Russell funds were within
striking distance of their own custom benchmark does not answer
Johnson’s theory of objective imprudence—that the Russell TDFs’
unique features, which were also baked into the custom bench-
mark, are what made them an objectively imprudent investment
to begin with. See, e.g., Doc. 191-3 at 22 (“Russell dodges the proper
question: whether those very characteristics of the Russell TDFs
made them an imprudent investment for the Plan given Royal Car-
ibbean’s investment objectives”).
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14 Opinion of the Court 25-10692
The touchstone for objective imprudence is that a chal-
lenged investment “must be assessed against the actions of a hypo-
thetical prudent fiduciary with like aims.” Pizarro, 111 F.4th at 1181
(citation modified). We make no determination about whether the
record warrants summary judgment under the appropriate stand-
ard.
IV.
For the foregoing reasons, the decision of the district court
is REVERSED. We REMAND for further proceedings not incon-
sistent with this opinion.