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Benefits
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January 27, 2025
Steel Company's ERISA Suit Booted For Lack Of Specifics
A Florida federal judge dismissed a proposed class action alleging a steel manufacturer loaded its employee 401(k) plan with exorbitant fees and risky investment options, ruling the worker leading the suit needed to provide more information about his efforts to raise concerns to the plan's committee.
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January 25, 2025
Trump Revives Federal Anti-Abortion Policies
President Donald Trump issued two executive orders Friday targeting abortion inside and outside the United States, reinstating a ban on federal funding for certain international family planning groups and revoking a pair of Biden-era directives supporting abortion access.
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January 24, 2025
Ill. Justices OK Workers' Injury Suits Over Dormant Diseases
The Illinois Supreme Court answered the Seventh Circuit's call on Friday to clarify the state's Workers' Occupational Diseases Act in a widow's wrongful death lawsuit against Goodrich Corp., finding the statute can apply to claims for asbestos-related cancer and other diseases that manifest belatedly despite the statute's other temporal restrictions.
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January 24, 2025
J&J Escapes Part Of Worker's Drug Benefits Suit, For Now
A suit alleging Johnson & Johnson overcharged employees through a prescription drug benefits program was partially tossed Friday, with a New Jersey federal judge ruling the suing worker failed to show the court could provide any remedies on her claims that plan members overpaid for medicine.
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January 24, 2025
Employer Groups Back Tossing Pension Annuity Suit In NY
Three employer trade groups are backing Bristol-Myers Squibb and investment manager State Street as they fight claims brought by retirees of the pharmaceutical giant that the companies violated federal benefits law by converting workers' pension benefits into annuity insurance contracts.
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January 24, 2025
5th Circ. Upholds Tossing Medicare Rate Policy Challenge
A Fifth Circuit panel said it agrees with a Texas federal judge that a lawsuit brought by four anesthesia practices claiming a Centers for Medicare and Medicaid Services policy will cost them $4 million in reduced reimbursements is statutorily barred.
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January 24, 2025
10 AGs Target Major Banks Over DEI, ESG Initiatives
Major financial institutions in the United States, including Goldman Sachs and JPMorgan, could have made business decisions to follow political agendas, attorneys general from 10 states said, urging them to tackle a series of questions about their diversity and inclusion policies.
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January 24, 2025
Lutnick Settles Chancery Suit Ahead Of Commerce Hearing
Billionaire Howard L. Lutnick, President Donald Trump's nominee for secretary of commerce, has settled a Delaware Court of Chancery derivative suit accusing the Newmark Inc. principal executive officer of "blowing smoke" around his part in a $500 million stock-value gain in order to receive a $50 million bonus.
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January 24, 2025
Dentons Adds 2 Healthcare Attys From Katten In NY
Dentons announced that it has added two attorneys with extensive experience in Medicare and Medicaid reimbursement, regulatory compliance and False Claims Act defense as New York-based partners in its healthcare practice.
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January 23, 2025
Wells Fargo Workers Score Class Cert. In Stock Option Suit
Former employees of Wells Fargo & Co. have received certification for their proposed class in litigation in Minnesota federal court alleging the bank used dividends earned by its employee stock ownership fund to defray its 401(k) matching obligations.
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January 23, 2025
Retired Pittsburgh Cops Overpaid For Healthcare, Panel Rules
Pennsylvania's Commonwealth Court has ruled that the city of Pittsburgh overcharged retired police officers for healthcare benefits, rejecting the city's argument to overturn an arbitrator's award in favor of the local Fraternal Order of Police lodge as too expansive.
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January 23, 2025
Advanced Auto Parts Gets Brakes Tapped On Investor Suit
Advanced Auto Parts beat back a proposed class action on Thursday that accused the company and its top brass of misleading investors about the failure of a new pricing strategy and purposefully inflating the impact of price reductions, with a North Carolina federal judge finding that the suit failed to plead knowledge of wrongdoing.
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January 23, 2025
Del. Justices Won't Revive Skechers Inc. Aircraft Use Suit
Delaware's top court on Thursday grounded with scant comment a derivative suit appeal filed on behalf of a stockholder of comfort shoemaker Skechers USA Inc. seeking revival of a dismissed lower court case alleging failure to control top executives' use of corporate aircraft for personal travel.
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January 23, 2025
Yellow Corp. Says It Acted In Good Faith With WARN Notices
Defunct trucking company Yellow Corp. told a Delaware bankruptcy judge on Thursday that its last delivery was made the day before it laid off 22,000 union workers, making it a "liquidating fiduciary" that would not be liable for inadequate mass-layoff notices under the WARN Act.
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January 23, 2025
Fla. Insurer Tries To Toss Suit Blaming It For Black Mold Death
A Sunshine State insurer accused of wrongfully causing the death of a woman who died from black mold contamination after it didn't send a promised team to her home to fix hurricane damage has urged a Florida judge to dismiss the suit, calling it a bad-faith case in disguise trying to get around an already pending contract dispute.
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January 23, 2025
7th Circ. Says Ex-Manager's Noncompete Allowed Clawback
The Seventh Circuit reopened an auto parts company's lawsuit seeking to recover proceeds a plant manager got from selling shares he was granted, saying Delaware's top court has made clear that a lower court shouldn't have analyzed whether the forfeiture-for-competition provisions of the stock agreements were reasonable.
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January 23, 2025
AT&T, Fidelity Beat Retiree's Suit Over Mistaken Benefits
A retiree who claimed he was misled by AT&T and Fidelity into thinking he was owed more retirement benefits than he received cannot proceed with his suit, a Colorado federal judge ruled, stating that the snafu resulted in a miscommunication, not a violation of federal benefits law.
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January 23, 2025
UnitedHealthcare Settles Proton Beam Coverage Suit
UnitedHealthcare has agreed to resolve a proposed class action claiming it unlawfully denied coverage of a proton beam cancer treatment after wrongly labeling it as experimental, the insurance company and plan participants told a Massachusetts federal court.
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January 22, 2025
Boeing Rips Investors' Class Cert Bid In 737 Max Blowout Suit
Boeing told a Virginia federal judge that pension funds cannot reverse-engineer sweeping securities fraud claims based on last year's Alaska Airlines midair blowout incident, saying their bid to certify a class of investors who were purportedly misled by Boeing's assurances of the 737 Max jets' safety must be rejected.
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January 22, 2025
Justices Seem Willing To Reopen Cornell Workers' ERISA Suit
The U.S. Supreme Court on Wednesday seemed inclined to revive a federal benefits lawsuit from Cornell University workers alleging their retirement plan was mismanaged and charged excessive fees, with several justices appearing open to arguments that the Second Circuit overreached when it shut down the case.
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January 22, 2025
9th Circ. Won't Revive Express Scripts Generics Dispute
A Ninth Circuit panel won't renew a suit accusing Express Scripts of shortchanging a Seattle pharmacy on reimbursements for the generic version of HIV/AIDS drug Truvada, finding that only the name-brand prescription was listed in their contract as a "covered specialty medication" entitled to a higher payback rate.
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January 22, 2025
Unum Unlawfully Cut Disability, Hughes Hubbard Worker Says
Insurance company First Unum Life Insurance unlawfully halted a Hughes Hubbard and Reed LLP manager's long-term disability benefits and decided to solely follow in-house doctors' recommendations, a suit filed in New Jersey federal court claims.
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January 22, 2025
Logistics Cos. Say Workers' Tobacco Fee Suit Filed Too Late
A pair of logistics companies are asking a Connecticut federal court to throw out a proposed class action alleging they violated federal law by not fully reimbursing employees who paid an additional tobacco-use fee on their healthcare, saying all the claims in the suit are barred by statutes of limitation.
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January 22, 2025
JPMorgan Accused Of Misusing Forfeited 401(k) Funds
JPMorgan Chase & Co. violated federal benefits law when it used former employees' forfeited, unvested 401(k) contributions to cover millions of dollars of employer contributions rather than covering plan expenses, according to a proposed class action filed in California federal court.
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January 21, 2025
Del. Justices Seal Oracle's Win In $9.3B NetSuite Merger Suit
The Delaware Supreme Court on Tuesday affirmed the Chancery Court's toss last year of a challenge to Oracle Corp.'s $9.3 billion acquisition of NetSuite Corp. in 2016, saying the Chancery did not err in finding that the transaction was untainted from influence by Oracle's management or its founder and top shareholder.
Expert Analysis
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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.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.
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1st Gender Care Ban Provides Context For High Court Case
The history of Arkansas' ban on gender-affirming medical care — the first such legislation in the U.S. — provides important insight into the far-reaching ramifications that the U.S. Supreme Court's decision in U.S. v. Skrmetti next term will have on transgender healthcare, says Tyler Saenz at Baker Donelson.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.