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Benefits
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January 14, 2025
FTC Issues Second Report On PBMs, Expanding Study Scope
The Federal Trade Commission released a second "interim" report on pharmacy benefit managers and their effects on specialty drug prices Tuesday, claiming that the companies have driven up prices well over acquisition costs and continue to squeeze independent pharmacies out of the market through low reimbursement rates.
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January 14, 2025
NFL Plan On Hook For Atty Fees Despite 5th Circ. Win
The NFL retirement plan must cover up to $1.86 million in attorney fees and expenses for a former running back who said the plan mishandled his disability benefits application, a Texas federal judge ruled, saying the Fifth Circuit's reversal of his bench trial win didn't discredit his exposure of the plan's systemic issues.
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January 14, 2025
Mass. AG Says Insulin Makers, Middlemen Colluded On Costs
Insulin makers Eli Lilly, Sanofi and Novo Nordisk conspired with pharmacy benefit managers OptumRX, Express Scripts and CVS Caremark to jack up prices by as much as 1,000%, the Massachusetts attorney general alleged in a suit.
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January 14, 2025
Feds Ask 2 Years For Ex-Pol On Tax, Pandemic Aid Charges
A former Massachusetts state senator should spend two years in prison after being convicted of illegally obtaining unemployment assistance and filing a false tax return, the federal government argued, citing the "greed" at the heart of the politician's conduct.
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January 14, 2025
DOL Finalizes ERISA Voluntary Correction Program Changes
The U.S. Department of Labor's employee benefits arm has finalized changes to a program allowing retirement plan managers to voluntarily self-correct when they fail to forward employee contributions on time or make other transaction errors, according to a notice the agency posted online Tuesday.
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January 13, 2025
Justices Lean Toward Narrow Ruling In Retiree's ADA Fight
Several U.S. Supreme Court justices seemed wary Monday of issuing a sweeping decree in a disabled retiree's Americans with Disabilities Act lawsuit, hinting at plans to issue a narrower decision tailored to the specifics of the case.
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January 13, 2025
IRS Eases Process Of Insurance Co. Alternate Tax Revocation
The Internal Revenue Service laid out a streamlined process Monday by which certain insurance companies that took an elective application of an alternative tax may obtain automatic consent to revoke that election.
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January 13, 2025
$13.4M Suit Against Insurer For Conn. Death Verdict Paused
A Connecticut state court judge has rejected Hanover Insurance Co.'s bid to dismiss a mother's lawsuit seeking to partially enforce a $13.4 million trial judgment over her son's death in a group home, but agreed to pause the matter while the group home appeals the verdict.
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January 13, 2025
Bechtel Escapes 401(k) Suit Alleging Shoddy Default Fund
A Virginia federal judge dismissed a retiree's suit claiming Bechtel Global Corp. tapped a pricey and underperforming fund for its retirement plan's default investment option, tossing the suit a second time for failing to show that a comparable fund was a better option.
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January 13, 2025
Feds Say NC Medical Biz Owner Overbilled For Nutrient Drinks
A North Carolina businessman who ran a durable medical equipment business under multiple names overbilled the state's Medicaid program $1.85 million for special enteral nutritional formulas used to treat inherited metabolic disorders when he was actually just providing people common nutritional shakes like Ensure, the federal government said.
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January 13, 2025
Justices Won't Hear Auto Parts Co.'s ERISA Arbitration Push
The U.S. Supreme Court declined Monday to review the Sixth Circuit's refusal to force arbitration of a suit accusing an auto parts company of packing its employee retirement plan with subpar investment options.
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January 10, 2025
Up Next At High Court: Porn ID Check & Retiree Discrimination
The U.S. Supreme Court will return to the bench Monday for a full argument session, in which the justices will debate whether a Texas law requiring pornography websites to verify their visitors aren't minors violates the First Amendment and if retirees have the right to sue former employers for benefits discrimination.
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January 10, 2025
X Fights Finding Severance Row Contract Claims Can Survive
X Corp. and Elon Musk squared off with ex-Twitter workers in Delaware federal court, filing dueling briefs that took opposing stances over whether a district judge should adopt a recommendation to keep alive some breach-of-contract allegations in the workers' proposed class action claiming they were cheated out of severance benefits.
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January 10, 2025
Health Co. Wants To Quit Nicotine Surcharge Suit
Nonprofit health system Advocate Aurora Health is urging an Illinois federal judge to permanently toss former employees' lawsuit targeting an allegedly illegal tobacco-use surcharge in its health plan, arguing that after three tries they still have failed to bring a viable claim.
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January 10, 2025
9th Circ. Affirms Hearing Aid Co.'s Win Over Investor Suit
The Ninth Circuit on Friday handed a win to Eargo Inc. and affirmed the dismissal of a securities class action against the hearing aid company, which alleged that the company and its top brass acted with intent to commit insurance billing fraud.
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January 10, 2025
Justices To Review ACA Preventive Care Fight
The U.S. Supreme Court agreed Friday to review a Fifth Circuit decision finding a task force setting coverage requirements on preventive care was unconstitutional, setting up a high-stakes battle over the Affordable Care Act that could affect individuals' insurance coverage for things like colon and breast cancer screenings.
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January 10, 2025
American Airlines Faulted For ESG Focus In 401(k) Plan
A Texas federal judge ruled Friday that American Airlines violated federal benefits law by emphasizing environmental, social and governance factors in its 401(k) plan decisions, but he put off deciding whether the retirees suffered losses and what remedy they should receive.
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January 10, 2025
Ex-Twitter Exec Can't Snag Docs In Bonus Suit
A former senior director of compensation for X Corp., previously known as Twitter, won't be able to recover communications from Twitter management or financial records in his suit alleging unpaid bonuses after Elon Musk took over the company, a California federal magistrate judge ruled.
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January 10, 2025
IRS Proposes Rules For Roth Catch-Up Contributions
The Internal Revenue Service floated rules Friday for catch-up contributions made possible by the 2022 retirement law known as Secure 2.0, including the requirement that contributions made by certain participants be designated Roth contributions.
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January 10, 2025
Holland & Knight Balks At 'Tactical' DQ Bid In Benefits Fight
Holland & Knight LLP urged a Georgia federal court to reject a "purely tactical move" seeking to disqualify the law firm from representing doctors accusing its former client, Polaris Spine and Neurosurgery PC, of botching the distribution of their retirement benefits, arguing its prior representation of Polaris isn't related to the suit.
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January 10, 2025
Cruise Contractors Drop $2.8M Union Fund Debt Row
Two cruise ship contractors and a union pension fund have wrapped up their dispute over the contractors' $2.8 million debt to fund, indicating to a Louisiana federal judge Friday that they've settled the last outstanding issue in the case and are ready for the litigation to be dismissed.
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January 10, 2025
Taxation With Representation: Kirkland, Davis Polk, Wachtell
In this week's Taxation With Representation, Constellation acquires Calpine, Cintas seeks a deal with UniFirst Corp., Stryker Corp. acquires Inari Medical Inc., and Paychex Inc. buys Paycor.
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January 10, 2025
X Asks 9th Circ. To Back Dismissal Of $500M Severance Suit
Social platform X urged the Ninth Circuit to uphold the dismissal of a suit claiming it owes workers $500 million in severance after Elon Musk bought the business and conducted mass layoffs, arguing the lower court correctly found that the ex-employees couldn't sue under federal benefits law.
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January 09, 2025
Sentara Health Workers Say Retirement Fund Is Mismanaged
Two Sentara Health employees have filed proposed class action in Virginia federal court accusing the company's retirement fund managers of failing to properly manage a $136 million plan, arguing it lost millions due to the committee's retention of an underperforming stable value fund in the face of better options.
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January 09, 2025
5 Things Executive Pay Attys Should Keep An Eye On In 2025
Tesla chief executive Elon Musk will be seeking a green light for a $56 billion pay package while a new administration in the White House may scuttle proposed incentive pay regulations and a ban on noncompete agreements. Here, Law360 looks at five things executive compensation lawyers will be following in the new year.
Expert Analysis
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5 E-Discovery Predictions For 2025 And Beyond
In the year to come, e-discovery will be shaped by new and emerging trends, from the adoption of artificial intelligence provisions in protective orders, to the proliferation of emojis as a source of evidence in contemporary litigation, say attorneys at Littler.
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7 Ways 2nd Trump Administration May Affect Partner Hiring
President-elect Donald Trump's return to the White House will likely have a number of downstream effects on partner hiring in the legal industry, from accelerated hiring timelines to increased vetting of prospective employees, say recruiters at Macrae.
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E-Discovery Quarterly: Rulings On Custodian Selection
Several recent rulings make clear that the proportionality of additional proposed custodians will depend on whether the custodians have unique relevant documents, and producing parties should consider whether information already in the record will show that they have relevant documents that otherwise might not be produced, say attorneys at Sidley.
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Series
Exercising On My Peloton Bike Makes Me A Better Lawyer
While I originally came to the Peloton bike for exercise, one cycling instructor’s teachings have come to serve as a road map for practicing law thoughtfully and mindfully, which has opened opportunities for growth and change in my career, says Andrea Kirshenbaum at Littler.
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Exploring Venue Strategy For Trump-Era Regulatory Litigation
Litigation will likely play a prominent role in shaping policy outcomes during the second Trump administration, and stakeholders have several tools at their disposal to steer regulatory litigation toward more favorable venues, say attorneys at Covington.
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Lessons Learned From 2024's Top FMLA Decisions
Last year's major litigation related to the Family and Medical Leave Act underscores why it is critical for employers to understand the basics of when leave and accommodations are required, say attorneys at Dechert.
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Series
Playing Esports Makes Me A Better Lawyer
Competing in a global esports tournament at Wimbledon last year not only fulfilled my childhood dream, but also sharpened skills that are essential to my day job, including strategic thinking, confidence and networking, says AJ Schuyler at Jackson Lewis.
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An Associate's Guide To Career Development In 2025
As the new year begins, associates at all levels should consider establishing career metrics, fostering key relationships and employing other specific strategies to help move through the complexities of the legal profession with confidence and emerge as trailblazers, say EJ Stern and Amanda George at Fractional Law Firm.
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What To Watch For In The 2025 Benefits Landscape
While planning for 2025, retirement plan sponsors and service providers should set their focus on phased implementation deadlines under both Secure 1.0 and 2.0, an upcoming U.S. Supreme Court ruling, and the fate of several U.S. Department of Labor regulations, says Allie Itami at Lathrop GPM.
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Series
Fixing Up Cars Makes Me A Better Lawyer
From problem-solving to patience and adaptability to organization, the skills developed working under the hood of a car directly translate to being a more effective lawyer, says Christopher Mdeway at Kaufman Dolowich.
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2024 Has Been A Momentous Year For ESG
Significant developments in the environmental, social and governance landscape this year include new legislation, evolving global frameworks, continued litigation and enforcement actions, and a U.S. Supreme Court decision that has already affected how lower courts have viewed some ESG challenges, say attorneys at Katten.
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Making The Pitch To Grow Your Company's Legal Team
In a compressed economy, convincing the C-suite to invest in additional legal talent can be a herculean task, but a convincing pitch — supported by metrics and cost analyses — may help in-house counsel justify the growth of their team, say Elizabeth Smith and Roger Garceau at Major Lindsey.
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Musk Pay Fight Shows Investor Approval Isn't Universal Cure
The Delaware Court of Chancery's recent denial of a motion revising its prior rescission of Elon Musk's nearly $56 billion compensation package is a reminder of the heightened standard corporate boards must meet in conflicted controller transactions and that stockholder approval doesn't automatically cure fiduciary wrongdoing, say attorneys at A&O Shearman.
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When US Privilege Law Applies To Docs Made Outside The US
As globalization manifests itself in disputes over foreign-created documents, a California federal court’s recent trademark decision illustrates nuances of both U.S. privilege frameworks and foreign evidentiary protections that attorneys must increasingly bear in mind, say attorneys at Hunton.
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Ring In The New Year With An Updated Employee Handbook
One of the best New Year's resolutions employers can make is to update their employee handbooks, given that a handbook can mitigate, or even prevent, costly litigation as long as it accounts for recent changes in laws, court rulings and agency decisions, say attorneys at Kutak Rock.