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Benefits
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June 21, 2024
Attys Eye $1.4M Slice Of State Street Retirement Plan Deal
Class counsel are requesting a one-third cut from a $4.3 million settlement with State Street Corp. to resolve claims the bank stocked its employees' 401(k) plan with imprudent funds that it managed or that were run by its subsidiaries or affiliates.
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June 20, 2024
UnitedHealth To Pay $1M To End NY AG Birth Control Probe
New York Attorney General Letitia James announced Thursday that UnitedHealthcare of New York Inc. will pay $1 million to end allegations that the company violated Empire State law by refusing to fully cover an oral contraceptive.
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June 20, 2024
HHS Drug Pricing Program Flouts Constitution, Boehringer Says
An "unprecedented" new Medicare price negotiation program deprives drugmakers of their constitutional rights and forces them to make declarations on issues of public concern that reflect poorly on them, Boehringer Ingelheim Pharmaceuticals Inc. argued Thursday in Connecticut federal court as it echoed the industry chorus seeking to strike the initiative.
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June 20, 2024
Worker Says Co. Inflated Deductions To Duck Prevailing Wage
An electrical contracting firm overdeducted fringe benefits from the pay of employees who worked on publicly funded projects, dragging down their prevailing wages, a former electrician said in a proposed class action in Pennsylvania state court.
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June 20, 2024
11th Circ. Backs Stryker's Defeat Of Fired Worker's Leave Suit
The Eleventh Circuit refused Thursday to revive a suit claiming medical technology company Stryker illegally fired a worker on leave awaiting the birth of his child, ruling that because the leave didn't formally kick in until the child was born, his termination was fair game.
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June 20, 2024
NBA Fraud Ringleader To Plead Fifth At Doctor's Trial
Counsel for a former NBA journeyman who pled guilty after being accused of spearheading a scheme to defraud a league healthcare plan said his client will probably invoke the Fifth Amendment if called to testify at a co-defendant's upcoming trial.
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June 20, 2024
DOL Benefits Head Plans To Attend House Oversight Hearing
The head of the U.S. Department of Labor's employee benefits arm is planning to testify at a House oversight hearing called by a legislator critical of that office's regulations, a DOL spokesperson said Thursday.
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June 20, 2024
Boston College Settles 401(k) Participants' Suit
Boston College and participants in the school's employee retirement plan told a Massachusetts federal court they have struck a deal to resolve claims the college mismanaged the 401(k) plan.
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June 20, 2024
ACLU Urges 9th Circ. To Reject Insurer's Trans Health Appeal
The American Civil Liberties Union urged the Ninth Circuit to reject Blue Cross Blue Shield of Illinois' appeal seeking to overturn a lower court ruling that found denying transgender health plan participants gender-affirming care violated the Affordable Care Act, arguing federal healthcare nondiscrimination laws clearly protected against gender identity bias.
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June 18, 2024
Seattle Can't Stop Firefighters' COVID Vaccine Suit
Firefighters who sued over Seattle's COVID-19 vaccine mandate have offered sufficient evidence to allege they faced religious discrimination, according to a federal magistrate judge who trimmed some claims on Tuesday but refused to toss the lawsuit.
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June 18, 2024
Ex-Twitter Workers Seek Class Cert. In Arbitration Fee Fight
A group of former Twitter workers who accuse X Corp. of stalling their employment disputes by refusing to pay arbitration fees urged a California federal judge Monday to certify multiple classes of workers over allegations their arbitration efforts have been thwarted by the social media giant.
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June 18, 2024
DuPont, Corteva Must Face Pension Benefits Class Action
Chemical companies DuPont and Corteva can't escape a class action claiming they illegally stripped retirement benefits from hundreds of workers following a merger and subsequent spinoff, a Pennsylvania federal judge ruled, finding factual disputes that need to be sorted out at trial.
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June 18, 2024
Hospital Board Says Feds Underpaid Claims By $17M
A Navajo Nation hospital board is suing the federal government, alleging the U.S. Department of Health and Human Services underpaid its fiscal year 2016 funding request for contract support costs by $17.4 million without any legal justification.
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June 18, 2024
Kohler Inks $2.45M Deal To Wrap Up Mortality Table Suit
Kohler struck a $2.45 million deal that aims to beef up pension payouts for about 500 married retirees to end a proposed class action claiming the manufacturing company shorted couples on pension benefits through the use of outdated data, according to a Wisconsin federal court filing.
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June 18, 2024
Milliman Wins 401(k) Mismanagement Suit After Trial
Consulting company Milliman Inc. prevailed over a class action suit alleging the company violated federal benefits law by keeping poorly performing investments tied to a financial subsidiary in its employee 401(k) plan, according to a California federal judge's order entered after a 10-day bench trial.
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June 18, 2024
HP Escapes 'Novel' 401(k) Suit Over Use Of Forfeited Funds
A California federal judge threw out a proposed class action that accused HP of unlawfully using former workers' forfeited 401(k) funds to satisfy its own contributions, saying nothing in federal benefits law required the company to use the funds to cover plan expenses.
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June 18, 2024
BDO's $2.25M Deal Ending 401(k) Suit Gets Final OK
An Illinois federal judge on Monday gave his final sign-off to a $2.25 million settlement accounting firm BDO agreed to pay to resolve a suit alleging the company failed to verify that retirement plan funds in an employee 401(k) were evaluated properly.
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June 18, 2024
Va. City Can't Ax Atty's Wrongful Firing Suit Over FMLA Fraud
A federal judge declined to toss an attorney's suit claiming the Virginia city he worked for illegally fired him and accused him of doctoring a medical form he needed to care for his sick mother, saying he showed the city may have stepped on his medical leave rights.
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June 18, 2024
Ex-USC Linebacker Cops To Pandemic Unemployment Fraud
A former linebacker for the University of Southern California football team pled guilty to fraudulently seeking over $1 million in pandemic-era unemployment benefits.
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June 17, 2024
Teamsters Plan Says Health Network Has Monopoly In Conn.
A Teamsters healthcare benefits plan and a Connecticut public transit provider have sued the healthcare network Hartford Healthcare Corp., accusing it of having a monopoly over healthcare in a half-dozen regions of the state.
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June 17, 2024
Accused NBA Fraud Leader May Testify At Doctor's Trial
A former NBA player who was sentenced to 10 years in prison for allegedly spearheading a scheme to defraud the league's healthcare plan is likely to be called to testify at the upcoming trial of a co-defendant, a Manhattan federal judge said Monday.
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June 17, 2024
DOL Says Insurers Can't Block ERISA Retirement Advice Regs
The U.S. Department of Labor urged a Texas federal court to reject a group of insurers' bid to halt the implementation of recently finalized regulations expanding which types of retirement investment advice fall under the purview of federal benefits law, arguing the challengers' request wasn't justified.
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June 17, 2024
Pharmacy Groups Urge High Court To Hear Okla. PBM Case
Pharmacy industry groups asked the U.S. Supreme Court to reverse a Tenth Circuit decision that overturned portions of an Oklahoma law regulating pharmacy benefit managers, saying these intermediaries have driven up costs for patients while raising their own bottom lines, and states should be allowed to keep them in check.
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June 17, 2024
Catching Up With Delaware's Chancery Court
Proposed amendments to Delaware's General Corporation Law that were prompted by several recent Chancery Court rulings sailed through the state Senate last week despite loud opposition from corporate law professors and other Chancery Court watchers, and Tesla shareholders filed two new suits against CEO Elon Musk.
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June 17, 2024
Justices To Hear Nvidia Case On Securities Pleading Standard
The U.S. Supreme Court on Monday agreed to hear an appeal of a Ninth Circuit ruling that revived investors' claims over chipmaker Nvidia's crypto mining sales, giving the high court a chance to weigh in on the pleading requirements needed to sustain a shareholder class action.
Expert Analysis
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SEC's Life Sciences Actions Utilize Novel Tools And Theories
Recent enforcement actions show that the U.S. Securities and Exchange Commission is employing new forms of data analytics and noteworthy applications of insider trading laws in its scrutiny of fraud within the life sciences and health industries, say Edward Imperatore and Jina Choi at MoFo.
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How And Why Your Firm Should Implement Fixed-Fee Billing
Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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Opinion
Judicial Independence Needs Defense Amid Political Threats
Amid recent and historic challenges to the judiciary from political forces, safeguarding judicial independence and maintaining the integrity of the legal system is increasingly urgent, says Robert Peck at the Center for Constitutional Litigation.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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Wilderness Therapy Ruling May Deter Broad Policy Exclusions
A Utah federal court's recent ruling in M.A. v. United Healthcare that an insurance policy exclusion for the adolescent behavioral health treatment known as wilderness therapy was ambiguous shows that blanket rejections can go too far, and may preclude new rationales for claim denials, says Mark DeBofsky at DeBofsky Law.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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Cos. Must Show Discretion In Public Statements When Sued
A recent securities class action ruling in Massachusetts federal court against software company Pegasystems shows that a boilerplate public denial of a lawsuit's merits can form the basis for a claim that the statement was false or misleading, underscoring the need to use discretion when responding to pending claims, say Brian Kearney and Stephen Kastenberg at Ballard Spahr.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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5th Circ. Ruling Reminds Attys That CBP Can Search Devices
The Fifth Circuit’s recent Malik v. Department of Homeland Security decision adds to the chorus of federal courts holding that border agents don’t need a warrant to search travelers’ electronic devices, so attorneys should consider certain special precautions to secure privileged information when reentering the U.S., says Jennifer Freel at Jackson Walker.
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Avoiding The Ethical Pitfalls Of Crowdfunded Legal Fees
The crowdfunding of legal fees has become increasingly common, providing a new way for people to afford legal services, but attorneys who accept crowdsourced funds must remember several key ethical obligations to mitigate their risks, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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An Overview Of 6 PBM Bills Moving Through Congress
As legislators turn to pharmacy benefit manager reform as a potential next step in addressing the cost of prescription drugs, six congressional committees have recently advanced PBM-related legislation with generally high bipartisan support, suggesting that a final package is likely to advance through Congress, say Rachel Stauffer and Katie Waldo at McDermott+Consulting.
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10th Circ. ERISA Ruling Is Promising For Self-Funded Plans
Though some recent appellate decisions have seemingly narrowed application of Employee Retirement Income Security Act preemption, which generally helps protect self-funded health plans from state regulation, the Tenth Circuit's decision in PCMA v. Mulready takes a big step toward reaffirming preemption, say attorneys at Bass Berry.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Series
Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.