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Benefits
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April 23, 2025
Retirement Co. Hit With $38.8M Jury Verdict In ERISA Action
A New York federal jury Wednesday awarded a 27,000-member class of retirement plan participants nearly $38.8 million after finding that Pentegra Retirement Services violated federal benefits law by saddling a $2.1 billion 401(k) plan with excessive administrative fees.
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April 23, 2025
GoodRx Beats Investor Suit Over Kroger-Linked Biz
GoodRx Holdings Inc. has escaped a proposed shareholder class action alleging it concealed from investors the indispensability of its relationship with Kroger, according to an order signed by a California federal judge who said the suit does not show GoodRx knew Kroger had plans to renegotiate its contracts.
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April 23, 2025
Severance Deal Bars 401(K) Suit, Whataburger Tells 5th Circ.
Whataburger asked the Fifth Circuit on Wednesday to uphold the dismissal of an ex-worker's suit claiming the company failed to trim underperforming investment funds from its $215 million retirement plan, stating the lower court correctly found a release he signed doomed his case.
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April 23, 2025
Software Co. Can't Escape 401(k) Investment Suit
A California federal judge refused to toss a federal benefits lawsuit from former ServiceNow employees alleging the cloud computing company kept an underperforming suite of target-date funds in its 401(k) plan for over a decade, finding allegations of a deficient process should proceed to discovery.
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April 23, 2025
GOP Leader Proposes Modernizing Contractor Rules
U.S. Senate Health Education Labor and Pensions Committee Chairman Bill Cassidy, R-La., on Wednesday unveiled proposals he says will modernize the independent contractor model without hindering workers' flexibility and profit opportunities, suggesting several changes Congress could take.
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April 23, 2025
Insurers Settle $1.1M Ryobi Battery Fire Claims
A group of insurers including The Hartford has agreed to settle a consolidated lawsuit alleging that a defective Ryobi power tool battery caused a fire that led to at least $1.1 million in losses to three businesses, according to a Wednesday notice filed in Connecticut federal court.
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April 22, 2025
Firms Vie To Lead Trade Desk Investor Suit Over AI Rollout
Robbins Geller, Bernstein Litowitz and other firms are seeking to represent a proposed class of investors in a suit alleging global digital marketing venture The Trade Desk Inc. hid snags that ultimately delayed the rollout its artificial intelligence-driven ad-buying platform.
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April 22, 2025
Santos, Attys Say Social Media Posts Don't Negate Remorse
George Santos and his attorneys wrote to a Brooklyn federal judge saying the former Congressman's posts on social media claiming to be a victim of government persecution don't negate the remorse he feels for stealing from campaign donors and inflating fundraising numbers.
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April 22, 2025
Hogan Lovells Adds Ex-HHS Atty To Health Practice
Hogan Lovells on Tuesday announced the arrival of a former U.S. Department of Health and Human Services attorney to the firm's global regulatory and intellectual property practice group.
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April 22, 2025
Del. Justices Order Matterport CEO Cash-Out Recalculation
Delaware's Supreme Court reversed and ordered a recalculation Tuesday for a $79 million Court of Chancery ruling on additional damages and interest due a former CEO of 3D building imaging company Matterport Inc. who challenged his $80 million cash-out in a 2021 go-public sale.
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April 22, 2025
Save Mart Reaches $20.5M Deal On Nonunion Retiree Benefits
California-based Save Mart Supermarkets will pay about $20.5 million to escape a suit from workers who alleged the company unlawfully revoked a monthly health reimbursement that it promised to nonunion retirees and their spouses for life, according to a proposed deal filed in federal court.
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April 22, 2025
Parker-Hannifin Workers Asked For Input On 401(k) Fund Case
Parker-Hannifin Corp. employees were asked Monday to respond to a petition seeking U.S. Supreme Court review of their recently revived 401(k) plan mismanagement allegations.
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April 22, 2025
Wells Fargo 'Sham' Hiring Suit Delayed For Mediation
A California federal judge agreed to move deadlines in a proposed investor class action accusing Wells Fargo of conducting "sham" job interviews to meet diversity targets that later triggered a stock drop when the practice was revealed, citing plans to attempt mediation in May.
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April 22, 2025
Religious Carveout Can't Shield Aid Group From Gay Bias Suit
A religious humanitarian nonprofit violated Maryland law by terminating health insurance for a gay ex-worker's husband, a federal judge ruled, saying a statutory exemption for religious organizations didn't apply because the former employee's data analyst job didn't support the group's core mission.
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April 21, 2025
Intel Retirees Seek Cert. In ERISA Suit Over Annuity Changes
A proposed class of nearly 2,000 Intel Corp. retirees urged a California federal judge on Monday to certify the retirees' Employee Retirement Income Security Act claims alleging Intel relied on outdated mortality assumptions when it converted their single life annuities to a joint and survivor design, resulting in lower payouts.
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April 21, 2025
Teamsters Unit Drops Health Insurance Suit Against Mich. Co.
A Teamsters local has dropped its lawsuit against a Detroit trucking company, indicating it will no longer pursue breach-of-contract litigation in Michigan federal court over the company's alleged failure to notify workers that they needed to sign up for health insurance.
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April 21, 2025
Premera's Teen Trans Policy 'Textbook' Sex Bias, Judge Says
Premera Blue Cross discriminated based on sex against transgender teens at the center of a lawsuit alleging the insurer and health plan administrator illegally denied coverage for gender-affirming chest surgery, according to a Washington federal judge who also denied class certification because the teens' claims are not typical of class members.
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April 21, 2025
Veterans Urge High Court To Ax Time Bar For Compensation
Veterans challenging an appellate court's ruling that a six-year limit applies to their claims for retroactive combat-related special compensation have told the U.S. Supreme Court that Congress's statute authorizing the compensation displaced preexisting settlement mechanisms and their statute of limitations.
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April 21, 2025
DOL Tells 5th Circ. It May Rescind Biden-Era ESG Rule
The U.S. Department of Labor told the Fifth Circuit on Monday it's considering rescinding a Biden-era rule allowing retirement fiduciaries to consider issues like climate change and social justice when choosing investments, according to filings in a suit challenging the rule from conservative states and energy companies.
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April 21, 2025
AG Accuses NJ Luxury Tower Contractors Of Labor Violations
New Jersey's attorney general on Monday announced a lawsuit against a general contractor and a group of subcontractors for shorting workers on wages and benefits during the construction of a Jersey City luxury high-rise.
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April 21, 2025
Trucking Co. Still Owes Most Of $10M Pension Bill, Court Told
A Michigan-based trucking company has stopped making payments toward a $10 million bill owed to a Teamsters pension fund after partially withdrawing from the plan, the fund said in a complaint filed Monday in Illinois federal court.
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April 21, 2025
X Gets Arbitral Awards Booted From Workers' Severance Case
The arbitration awards a group of X workers tried to present to a Delaware federal court don't add anything to their suit claiming the social media platform owes them additional severance payments, the court ruled, striking them from the docket.
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April 21, 2025
Unions Score Block On Orders To Fire Probationary Workers
A California federal judge blocked the Office of Personnel Management from ordering federal agencies to fire probationary employees and stopped several agencies from heeding its directives, but he declined to order them to rehire the workers they've already let go.
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April 21, 2025
Justices Mull 5th Circ. Redo In ACA Preventive Care Fight
The U.S. Supreme Court on Monday appeared skeptical of a Fifth Circuit ruling that found members of a task force setting preventive services coverage requirements under the Affordable Care Act were unconstitutionally appointed, with multiple justices suggesting kicking the case back down to the circuit court for additional arguments.
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April 21, 2025
High Court Wants SG's Input On Home Depot ERISA Case
The nation's highest court asked the U.S. solicitor general Monday to opine on whether it should hear a retirement plan mismanagement case from Home Depot workers who say the Eleventh Circuit wrongly required them to link financial losses to alleged breaches of fiduciary duty.
Expert Analysis
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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Series
Being A Luthier Makes Me A Better Lawyer
When I’m not working as an appellate lawyer, I spend my spare time building guitars — a craft known as luthiery — which has helped to enhance the discipline, patience and resilience needed to write better briefs, says Rob Carty at Nichols Brar.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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American Airlines ESG Ruling Could Alter ERISA Landscape
The Spence v. American Airlines ESG trial, speeding toward a conclusion in a Texas federal court, could foretell a dramatic expansion in ERISA liability, with plan sponsors vulnerable to claims that they didn't foresee short-term dips in stock prices, say attorneys at Mayer Brown.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.
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How To Comply With Chicago's New Paid Leave Ordinance
Chicago's new Paid Leave and Paid Sick and Safe Leave Ordinance went into effect earlier this month, so employers subject to the new rules should update leave policies, train supervisors and deliver notice as they seek compliance, say Alison Crane and Sarah Gasperini at Jackson Lewis.
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Dueling Calif. Rulings Offer Insight On 401(k) Forfeiture Suits
Two recent decisions from California federal courts regarding novel Employee Retirement Income Security Act claims around 401(k) forfeitures provide early tea leaves for companies that may face similar litigation, offering reasons for both optimism and concern over the future direction of the law, say Ashley Johnson and Jennafer Tryck at Gibson Dunn.
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Loss Causation Ruling Departs From Usual Securities Cases
A California federal court recently dismissed Ramos v. Comerica, finding that the allegations failed to establish loss causation, but the reasoning is in tension with the pleading-stage approaches generally followed by both courts and economists in securities fraud litigation, say Jesse Jensen and Aasiya Glover at Bernstein Litowitz.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Accidental Death Ruling Shows ERISA Review Standard's Pull
The Eleventh Circuit’s recent accidental death insurance ruling in Goldfarb v. Reliance Standard Life Insurance illustrates how an arbitrary and capricious standard of review in Employee Retirement Income Security Act denial-of-benefits cases creates a steep uphill battle for benefit claimants, says Mark DeBofsky at DeBofsky Law.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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50 Years Later, ERISA Remains A Work In Progress
A look at the 50 years since the Employee Retirement Income Security Act’s passage shows that while the law safeguards benefits through vesting rules, fiduciary responsibilities and anti-discrimination provisions, the act falls short in three key areas, says Carol Buckmann at Cohen & Buckmann.