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Benefits
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January 07, 2025
AT&T, Biz Groups Urge Justices To Back Cornell's ERISA Win
Top business and employee benefits industry lobbying groups along with telecommunications giant AT&T urged the U.S. Supreme Court to uphold Cornell University's victory over a federal benefits lawsuit alleging retirement plan mismanagement, in a flood of amicus briefs at the high court before arguments later this month.
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January 07, 2025
5 Argument Sessions Benefits Attys Should Check Out In Jan.
The U.S. Supreme Court will hear from Cornell University workers looking to revive a retirement plan mismanagement suit and a former firefighter who says federal disability bias law protects post-employment benefits, while circuit courts will weigh gender-affirming care restrictions and a battle over pension annuity payments. Here, Law360 looks at five arguments that benefits attorneys ought to keep an eye on this month.
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January 07, 2025
6th Circ. Declines To Send Publix Questions To Ga. High Court
The Sixth Circuit won't certify a set of questions about Georgia state nuisance law to the state's Supreme Court, after ruling that Publix Super Markets Inc. hasn't shown the appeals court needs to step in before a bellwether trial in the national opioid multidistrict litigation.
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January 07, 2025
Amazon Says Worker's $1.6M Atty Fees Are Excessive
An Amazon employee hasn't prevailed in his claims that the e-commerce giant hurdled his promotions for his U.S. Marine Corps Reserve leave, the company said, urging a Washington federal court to deny his $1.63 million in attorney fees requested as part of his settlement.
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January 07, 2025
Bass Pro To Pay $5M To End Worker's Tobacco Penalty Suit
Bass Pro Shops has agreed to pay $4.95 million to settle a proposed class action claiming the retailer unlawfully charged employees who use tobacco an extra $2,000 per year for health insurance without properly telling them how to avoid the charge, according to a Missouri federal court filing.
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January 07, 2025
Davis Polk, Kirkland Guide Paychex's $4.1B Paycor Buy
Human capital management company Paychex Inc., advised by Davis Polk & Wardwell LLP, on Tuesday unveiled plans to buy fellow human capital management, payroll and talent acquisition software company Paycor, led by Kirkland & Ellis LLP, in a deal with an enterprise value of $4.1 billion.
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January 06, 2025
Hospital Escapes Investment Underperformance Suit, For Now
A Colorado federal judge on Monday agreed to initially toss a proposed class action alleging mismanagement of a faith-based nonprofit hospital's retirement plan, finding the plaintiffs haven't backed up their allegations of investment underperformance.
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January 06, 2025
Fed. Circ. Revives DEA Agent's Challenge To Promotion Denial
The Merit Systems Protection Board must reevaluate a former U.S. Drug Enforcement Administration agent's case alleging a promotion was unlawfully delayed because he took time off for military service, the Federal Circuit said Monday, ruling an administrative judge used the wrong standard to evaluate his claim.
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January 06, 2025
Prepared Foods Co. Accused Of Duping CEO With Stock Plan
The former CEO of the American arm of a U.K.-based food manufacturer says the company deluded him with misleading promises about stock options during the recruitment process to get him to join and then refused to pony up the shares when he left.
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January 06, 2025
5th Circ. Iffy On Humana, Blue Cross Allergy Meds Denials
A Fifth Circuit panel seemed poised Monday to side with an allergy services provider accusing insurance giants Blue Cross Blue Shield and Humana of colluding to deny claims and drive the company out of the market.
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January 06, 2025
Biden OKs Social Security Fix In Move Cheered By Unions
Former government employees who have had their Social Security checks slashed because they receive a pension will see larger payouts this year now that President Joe Biden signed a bill repealing the decades-old benefit cuts, a move applauded by government employee unions.
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January 06, 2025
Northern Trust Inks $6.9M Deal To Shutter 401(k) Suit
Northern Trust Co. has agreed to pay $6.9 million to end a proposed class action claiming it tapped underperforming proprietary investment funds for its $2.8 billion retirement plan, according to a Monday filing in Illinois federal court.
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January 06, 2025
Ga. Physician Assistant Sues Insurer Over Disability Benefits
A former physician assistant at Emory Healthcare Inc. filed suit Friday against Unum Life Insurance Co. of America, alleging that the company wrongfully terminated her long-term disability benefits despite her continued suffering from long COVID, which rendered her "unable to sustain almost any level of physical activity."
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January 06, 2025
Ex-NFL Pro Abandons 5th Circ. Bid To Renew Benefits Suit
Former Denver Broncos fullback Detron Smith has dropped his Fifth Circuit appeal of a ruling that denied his bid to receive full disability benefits, days before arguments were set in the case.
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January 06, 2025
Outpatient Surgery Co. Strikes $1.5M Deal To End 401(k) Suit
United Surgical Partners International Inc. will pay about $1.48 million to end a proposed class action alleging the outpatient surgery network loaded its employee 401(k) plan with expensive investment options and excessive fees, according to a filing in Texas federal court.
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January 06, 2025
Conn. Justices Won't Hike Benefits Cut For Law Partner's Ex
The ex-husband of a law firm partner cannot secure a bigger cut of the partner's retirement funds because the payments from the firm are too "speculative" to qualify as property, the Connecticut Supreme Court ruled 5-1 on Monday.
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January 06, 2025
2nd Circ. Says Argent Can't Force ESOP Suit To Arbitration
The Second Circuit knocked down Argent Trust Co.'s bid to arbitrate a case alleging the wealth management company sold inflated shares to a barbecue chain's employee stock ownership plan, after ruling in a similar case that identical arbitration contract language wasn't enforceable.
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January 03, 2025
George Santos Wants Fraud Sentencing Delayed For Podcast
Expelled U.S. Rep. George Santos on Friday urged a New York federal judge to delay sentencing in his federal fraud case for six months, saying he needs time to earn money through his new "Pants On Fire" weekly gossip podcast to pay roughly $580,000 owed in restitution and forfeiture.
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January 03, 2025
PBMs 'Wasting' Time in Opioid MDL Discovery Spat: Judge
An Ohio federal judge overseeing multidistrict opioid litigation on Friday denied pharmacy benefit managers a stay to appeal a discovery order and said he believed the PBMs were "wasting" the court's time.
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January 03, 2025
NY Nursing Home Blames AG's 'Crusade' For Ch. 11
The owner of a 588-bed nursing facility on Long Island has filed for Chapter 11 protection in a New York bankruptcy court with more than $58 million in debt, saying it was the victim of a "crusade" and "smear campaign" launched by the state attorney general's office.
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January 03, 2025
Biden Signs Bill To Stop Convicted Lawmakers' Pensions
President Joe Biden has signed a law that would close a "loophole" to prevent former members of Congress convicted of certain crimes from receiving pensions during their appeals process.
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January 03, 2025
Laborers Benefit Funds Get OK For $4.7M Class Settlement
A New York federal judge signed off on a $4.7 million settlement of a long-running dispute between a class of workers and two union benefit funds, giving final approval to a deal that ends 16 years of litigation over a transfer of money between funds in the 2000s.
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January 02, 2025
Tesla Investors Appeal Chancery Rulings In Musk Pay Suit
Three Florida-based Tesla Inc. stockholders have moved ahead with Delaware Supreme Court appeals aimed at Court of Chancery decisions that short-circuited the electric car company's 10-year, $56 billion compensation plan for Elon Musk and granted a $345 million cash award for class attorneys who won the decision.
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January 02, 2025
1st Private Co. Joins Insulin Price-Fixing MDL
A Florida-based car dealer is the first private company to join a multidistrict litigation accusing Novo Nordisk, Eli Lilly and Sanofi-Aventis of fixing the prices of insulin and other drugs to treat diabetes.
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January 02, 2025
ERISA Can't Shield Packaging Co. From Genetic Privacy Suit
A food packaging company must face a former employee's lawsuit claiming it unlawfully asked about her family medical history, an Illinois federal judge ruled, saying the claims weren't preempted by federal benefits law because it wasn't clear a corporate wellness plan was involved.
Expert Analysis
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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How Calif. Justices' Prop 22 Ruling Affects The Gig Industry
The California Supreme Court's recent upholding of Proposition 22 clarifies that Uber, Lyft, DoorDash and other companies in the gig industry can legally classify their drivers as independent contractors, but it falls short of concluding some important regulatory battles in the state, says Mark Spring at CDF Labor.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Opinion
DOL's Impending Mental Health Act Regs Should Be Simplified
The U.S. Department of Labor should consider revising these six issues in its forthcoming Mental Health Parity and Addiction Equity Act regulations to ease the significant compliance hurdles for group health plan sponsors, says Alden Bianchi at McDermott.
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Opinion
Texas Judges Ignored ERISA's Core To Stall Fiduciary Rule
Two recent rulings from Texas federal courts, which rely on a plainly wrong reading of the Employee Retirement Income Security Act to effectively strike a forthcoming rule that would impose functional fiduciary duties onto sellers of investment services, may expose financially unsophisticated 401(k) participants to peddlers of misleading advice, says Mark DeBofsky at DeBofsky Law.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Parsing NJ Court's Rationale For Denying Lipitor Class Cert.
A New Jersey federal court's recent Lipitor rulings granting summary judgment and denying motions for class certification for two plaintiff classes offer insight into the level of rigorous analysis required by both parties and their experts to satisfy the requirements of class certification, says Catia Twal at Edgeworth Economics.
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Series
After Chevron: Challenges Loom For PBGC Actions
After Loper Bright, two recent actions taken by the Pension Benefit Guaranty Corp. already under scrutiny seem destined to be challenged and resolved under the new standard of judicial deference, which will greatly affect employers with potential withdrawal liability exposure, say Robert Perry and David Pixley at Jackson Lewis.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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A Guide To Long-Term, Part-Time Employee Determinations
With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.