Retirement plans for hundreds of employees at Kansas City-based DST in doubt after court ruling

Kansas City-based DST Systems Inc. was ordered in 2021 to pay tens of millions of dollars to employees, who claimed the company concentrated “an enormous and imprudent” amount of its profit-sharing plan in a single pharmaceutical stock. A federal appeals court has sent the cases back for a lower court to determine.
A federal appeals court has ruled that a lower court did not have jurisdiction under the Federal Arbitration Act to confirm tens of millions of dollars in arbitration awards to employees of Kansas City-based DST Systems Inc.

The ruling could throw the retirement plans of hundreds of employees at DST into limbo.

Citing a recent U.S. Supreme Court opinion limiting federal courts’ jurisdiction under the arbitration law, the 8th U.S. Circuit Court of Appeals held that the employees had not established an independent basis for jurisdiction.