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Benefits
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February 12, 2025
2nd Circ. Backs Deferred Compensation Award Calculation
The Second Circuit refused Wednesday to upend how a trial court calculated that a defunct photo processing company owes ex-employees over $800,000 following mismanagement of a deferred compensation plan, but said the lower court needs to reassess who's on the hook for payment.
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February 12, 2025
Poultry Producers Can't Dodge Bid-Rigging Claims In MDL
An Illinois federal judge trimmed on Tuesday some conspiracy claims from a massive antitrust case against chicken producers, including Pilgrim's Pride and over a dozen others, but kept intact other bid-rigging allegations, finding that a class of restaurants and other direct buyers plausibly alleged the companies increased prices in parallel.
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February 12, 2025
IRS Issues Corp. Bond Monthly Yield Curve For Feb.
The Internal Revenue Service published on Wednesday the corporate bond monthly yield curve for February for use in calculations for defined benefit plans, as well as corresponding segment rates and other related provisions.
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February 12, 2025
Tobacco Fee Couldn't Have Injured Worker, Campbell's Says
The Campbell's Co. urged a New Jersey federal court to toss a suit from a former worker alleging the company's tobacco-free wellness program is violating federal benefits law by making workers who use tobacco pay more for health insurance, arguing the ex-employee can't bring his claims because he never enrolled in the program.
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February 12, 2025
States Can't Halt Funding Ban On Trans Care, DOJ Tells Court
Washington, Minnesota and Oregon can't block a White House executive order that cuts off federal funding for gender-affirming care for minors, President Donald Trump's administration told a Washington federal judge, arguing that the states' suit is premature and that the president has acted within his powers.
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February 11, 2025
Trump Tells Agencies To Plan 'Large-Scale' Cuts With Musk
President Donald Trump signed an executive order Tuesday that directs agencies to prepare for "large-scale" cuts to the federal workforce and gives Elon Musk's Department of Government Efficiency the authority to approve the future hiring of career officials.
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February 11, 2025
Law Firm Equity Doesn't Offset Workers' Comp, NC Panel Told
A former partner at Cranfill Sumner LLP stuck in a 19-year struggle with his former law firm over workers' compensation told the North Carolina Court of Appeals on Tuesday that his equity stake shouldn't offset the amount of disability benefits he's paid.
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February 11, 2025
Labaton Keller Appointed Lead In Healthcare Co. IPO Suit
A New York federal judge on Tuesday appointed Labaton Keller Sucharow LLP as lead counsel in a securities class action accusing nursing-care provider PACS Group Inc. of misleading investors about false Medicare claims and regulatory investigations tied to its initial public offering.
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February 11, 2025
DOL Asks 5th Circ. To Pause Fiduciary Rule Battle
The U.S. Department of Labor asked the Fifth Circuit on Tuesday to pause its appeal of two federal court rulings blocking regulations that broadened the Employee Retirement Income Security Act's definition of a fiduciary, stating the Trump administration needs time to catch up on the case.
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February 11, 2025
Hospital Worker Didn't Need Note For COVID Benefits
A woman who quit her job at a Chambersburg, Pennsylvania, hospital due to concerns over COVID-19 didn't need to present medical evidence that her health put her at higher risk in order to collect pandemic-related unemployment benefits, a split Pennsylvania appellate court ruled Tuesday.
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February 11, 2025
CVS, Aetna Escape Testing Lab's $20.6M Unpaid Invoices Suit
A Connecticut federal judge threw out a testing laboratory's lawsuit seeking $20.6 million in unpaid invoices from Aetna Inc. and its owner CVS Health Corp., saying the complaint lacked detail and left the companies "guessing" which allegations corresponded to which claims.
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February 10, 2025
Merrill Lynch Objects To New Discovery Bid In Stock Loan Suit
Merrill Lynch told a New York federal court it should deny investors' request for supplemental transaction data in their suit alleging major banks colluded to avoid modernizing the stock loan market, arguing that the discovery period has closed, and there are no legitimate reasons to grant the "burdensome" request.
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February 10, 2025
Baker Hughes Obtains Toss Of Ex-Worker's 401(k) Fee Suit
A Texas federal judge tossed an excessive recordkeeping fees suit Monday from a proposed class of Baker Hughes 401(k) plan participants, finding evidence wasn't presented to show that the plan administrator owed a fiduciary duty in regard to so-called float money.
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February 10, 2025
Merrill Lynch $20M Bias Deal Should Be Approved, Judge Says
A U.S. magistrate judge has recommended granting the first green light to a $20 million settlement that will resolve discrimination and retaliation claims launched against Merrill Lynch by a proposed class of nearly 1,400 Black financial advisers who claimed they received less pay and promotions compared to their white counterparts.
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February 10, 2025
Pension Execs Found Liable In $2B Danish Tax Fraud Case
A New York federal jury found Monday by "clear and convincing evidence" that Denmark's tax agency reasonably relied on the false statements made on pension plan applications that were part of a $2.1 billion tax fraud scheme by pension plan executives.
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February 10, 2025
NY Funds Say Paramount 'Bound' To Mull $13.5B Sale Option
Five big New York public pension funds argued in a newly unsealed Delaware court filing on Monday that a Paramount special committee breached its fiduciary duties by neglecting a $13.5 billion company sale offer and called for a Court of Chancery order compelling evaluation of the deal.
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February 10, 2025
6th Circ. Backs Electric Co. In Fired Ex-Exec's Severance Suit
The Sixth Circuit upheld the dismissal Monday of an ex-executive's suit claiming the American Electric Power Service Corp. owed him severance after he was fired for failing to tamp down on his assistant's excessive spending, stating the company showed he was ineligible for the extra pay.
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February 10, 2025
Home Generator Maker Beats Suit Over COVID Sales Bust
Power generator maker Generac Holdings Inc. and its top brass have beaten for now a proposed shareholder class action over Generac's alleged failure to keep up with a surge in business during the COVID-19 pandemic, with a Wisconsin federal judge saying, "misfortune does not necessarily equate with fraud."
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February 10, 2025
UnitedHealth Unit Inks $20M Deal To End DOL Claims Row
A UnitedHealth subsidiary will pay more than $20 million to settle the U.S. Department of Labor's suit claiming it violated federal benefits law and employer health plans' own policies when it summarily rejected claims for emergency room services and drug tests, according to filings in Wisconsin federal court.
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February 10, 2025
NJ Hospital Hit With Class Claims Over Retirement Plan Fees
A New Jersey health system has been accused of mismanaging its employees' retirement funds, according to a proposed class action filed by one of its employees in Garden State federal court.
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February 10, 2025
Charter Used Forfeited 401(k) Funds For Itself, Suit Says
Charter Communications Inc. cost participants in its $7.9 billion 401(k) plan millions of dollars by using funds forfeited by ex-workers to cover its own contributions to the plan rather than administrative expenses, according to a proposed class action filed in Missouri federal court.
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February 10, 2025
Court Won't Reinstate NLRB Brief In Newspaper Union Suit
A federal judge won't reinstate a brief stricken from the record in a dispute between the National Labor Relations Board and the publisher of the Pittsburgh Post-Gazette, saying Friday that the board had misinterpreted her courtroom's rules and procedures.
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February 07, 2025
Teamsters Pension Plan Overseers Skirt Mismanagement Suit
The caretakers of a Teamsters pension plan dodged a mismanagement lawsuit Friday, with a New York federal judge dismissing the plan participants' claims that the plan's trustees and advisers greenlighted risky investment decisions and hefty plan management fees.
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February 07, 2025
9th Circ. Backs Ex-Bank Auditor's $1.5M Retaliation Suit Win
The Ninth Circuit upheld a $1.5 million jury verdict in favor of a former bank auditor who claimed he was fired for flagging evidence of wrongdoing, finding evidence suggesting he was treated differently from other workers was enough to back up the jurors' decision.
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February 07, 2025
Chicago Hospital Network Inks $850K Retirement Suit Deal
A Chicago-area hospital system will pay $850,000 to settle an ex-worker's proposed class action alleging it violated federal benefits law by failing to leverage the size of its $1.8 billion employee retirement plan to lower recordkeeping fees, according to filings Friday in Illinois federal court.
Expert Analysis
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Mental Health Parity Rules: Tips For Plans And Issuers
Following federal agencies' release of final mental health parity rules, plan sponsors and health insurance issuers should develop protocols for preparing compliant nonquantitative treatment limitation comparative analyses, say attorneys at Ropes & Gray.
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Series
Playing Diplomacy Makes Us Better Lawyers
Similar to the practice of law, the rules of Diplomacy — a strategic board game set in pre-World War I Europe — are neither concise nor without ambiguity, and weekly gameplay with our colleagues has revealed the game's practical applications to our work as attorneys, say Jason Osborn and Ben Bevilacqua at Winston & Strawn.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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Opinion
FTC's Report Criticizing Drug Middlemen Is Flawed
The Federal Trade Commission's July report, which claims that pharmacy benefit managers are inflating drug costs, does not offer a credible analysis of PBMs, and its methodology lacks rigor, says Jay Ezrielev at Elevecon.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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Plan Sponsors Must Prep For New Mental Health, Drug Rules
To comply with newly published health insurance rules requiring parity between access to mental health and substance use services compared to medical and surgical services, employers with self-insured plans will need to update third-party administrator agreements and collect data, among other compliance steps, say attorneys at Kilpatrick.
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How Cos. Can Protect Supply Chains During The Port Strike
With dock workers at ports along the East and Gulf Coasts launching a strike that will likely cause severe supply chain disruptions, there are several steps exporters and importers can take to protect their businesses and mitigate increased costs, say attorneys at Thompson Hine.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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FTC Focus: How Scrutiny Of PBMs And Insulin May Play Out
Should Express Scripts' recent judicial challenge to the Federal Trade Commission succeed, any new targets could add litigation and choice of forum to their playbooks, and potential FTC court action on insulin could be forced to parallel venues as the issues between the commission and PBMs evolve, say attorneys at Proskauer.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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Series
Round-Canopy Parachuting Makes Me A Better Lawyer
Similar to the practice of law, jumping from an in-flight airplane with nothing but training and a few yards of parachute silk is a demanding and stressful endeavor, and the experience has bolstered my legal practice by enhancing my focus, teamwork skills and sense of perspective, says Thomas Salerno at Stinson.
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SEC Settlement Holds Important Pay-To-Play Lessons
The U.S. Securities and Exchange Commission’s recent fine of an investment adviser, whose new hire made a campaign contribution within a crucial lookback period, is a seasonable reminder for public fund managers to ensure their processes thoroughly screen all associates for even minor violations of the SEC’s strict pay-to-play rule, say attorneys at Lowenstein Sandler.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.