Whataburger has secured a dismissal of a proposed class action lawsuit filed by former employee Miguel Esquivel, who claimed the company’s 401(k) retirement plan incurred significant losses due to fiduciary mismanagement. U.S. District Judge Xavier Rodriguez ruled that Esquivel lacked legal standing to proceed, as he had signed a separation and release agreement in 2023 that barred him from suing the company.

The lawsuit, which followed similar ERISA-based claims seen across industries, alleged that Whataburger failed to adequately manage its 401(k) investments, focusing on two allegedly underperforming mutual funds. However, Whataburger argued that the retirement plan offered 19 investment options and criticized Esquivel's claims as cherry-picking data from a limited comparison.

Although the case was dismissed without prejudice—allowing it to potentially be refiled by another plaintiff—Esquivel’s legal team has not commented on the outcome.