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Benefits
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December 18, 2024
IRS Pushes Some Retirement Plan Min. Distributions To 2026
The Internal Revenue Service updated the effective date to January 2026 — instead of next year — for when some must start to withdraw the required minimum amount of funds from several types of individual retirement accounts that were amended by a December 2022 retirement savings law.
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December 18, 2024
Justices Will Decide If Medicaid Recipients Can Pick Providers
The U.S. Supreme Court on Wednesday partially granted the state of South Carolina's petition to review a Fourth Circuit decision blocking its Medicaid program from ending its provider agreement with Planned Parenthood, agreeing to determine if the Medicaid Act allows a beneficiary to choose a specific provider.
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December 17, 2024
Alcohol Co. Sued Over Biz Hangover After COVID Lockdowns
Alcoholic beverage manufacturer MGP Ingredients Inc. has been hit with a proposed investor class action alleging the company misled the public about the continued success of its business following its exponential growth during the COVID-19 pandemic and related lockdowns.
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December 17, 2024
Express Scripts, OptumRx Can't Ditch LA County Opioid Suit
A California judge ruled Tuesday that Los Angeles County can keep pursuing a lawsuit claiming pharmacy benefit managers Express Scripts and OptumRx colluded with drugmakers to fuel the opioid epidemic, though the county must rework its complaint to specify how regulators were allegedly deceived.
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December 17, 2024
Los Angeles Can't Dodge Ex-Cop's Military Leave Bias Suit
A California federal judge declined to toss a former cop's suit claiming Los Angeles didn't grant equal sick and vacation time to service members and declined to promote him because he served in the National Guard, ruling he backed up his claims with enough detail to dodge dismissal.
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December 17, 2024
SEC Says Express Didn't Disclose $1M In Ex-CEO Perks
Express Inc. failed to disclose nearly $1 million worth of perks and personal benefits to former CEO Tim Baxter, according to a settlement released Tuesday by the U.S. Securities and Exchange Commission, which declined to levy a civil penalty against the fashion retailer in light of its cooperation and remediation.
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December 17, 2024
X Can't Seal Corporate Info In $500M Severance Dispute
A California federal judge refused Tuesday to allow X Corp. and Elon Musk to file under seal the company's corporate disclosure statement in a dispute over X's failure to adequately pay severance to former workers, saying there's no evidence that disclosing this information would harm the company.
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December 17, 2024
Drug Co. Investor Sues In Del. Over $140M Insider Windfall
A pension fund investor in Cerevel Therapeutics Holdings Inc. has sued Bain Capital Investors LLC and other alleged insiders of the company in Delaware's Court of Chancery, accusing them of lining up a secondary offering in the biopharmaceutical venture before disclosure of its planned sale to AbbVie.
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December 17, 2024
Asset Manager Gets 2½ Years For Role In $1.2B PDVSA Scheme
A Florida federal judge on Tuesday sentenced an asset manager who pled guilty to participating in a $1.2 billion scheme to embezzle money from Venezuela's state-owned oil company to 2½ years in prison.
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December 17, 2024
Nevada Defeats DOJ Military Bias Suit Over Pension Credits
A Nevada federal judge tossed the U.S. Department of Justice's suit claiming Nevada and its public employees' retirement system overcharged service members for pension credits, ruling that a law protecting troops' reemployment rights doesn't let service members beef up their retirement benefits at a discounted rate.
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December 17, 2024
4 Recent Policy Developments Benefits Attys Should Know
A trio of federal agencies finalized new disclosure requirements for how health plans cover mental health treatments, states took steps to regulate pharmacy benefit managers, the U.S. Department of Labor's investment advice regulations failed in court, and Congress passed legislation to make compliance with the Affordable Care Act easier. Here, Law360 looks back at four policy-related developments in the employee benefits field from the latter half of 2024.
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December 17, 2024
5th Circ. Preserves Feds' ACA Trans Health Policy
The Fifth Circuit upended a Texas court decision that invalidated a federal agency interpretation of the Affordable Care Act's provision on nondiscrimination in healthcare, keeping intact federal policy that prohibits insurers from discriminating against individuals seeking treatment for gender dysphoria.
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December 17, 2024
Ex-Pol Can't Shake Fraud Rap Over Jury's Racial Makeup
A Massachusetts federal judge denied a Vietnamese-American former state senator's bid to undo his conviction for unlawfully accepting unemployment assistance and filing a false tax return, rejecting claims that jury selection was tainted by "racial animus" on the part of prosecutors.
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December 16, 2024
Amazon Puts Speed Over Worker Safety, Sanders Report Says
Amazon prioritizes speed and profit over warehouse workers' safety, and the company has ignored its own internal studies on how to improve workplace safety, according to a report Sen. Bernie Sanders has released that Amazon vehemently derided late Monday as an attempt to support a false "preconceived narrative."
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December 16, 2024
AME Church Inks $20M Deal In Retirement Fraud Suit
The African Methodist Episcopal Church has agreed to pay $20 million to resolve a suit claiming it failed to step in when an employee embezzled $90 million from its retirement plan, according to a Tennessee federal court filing seeking an initial green light on the deal.
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December 16, 2024
Chemical Co. Retirees Agree To End 401(k) Fee Suit Appeal
Chemical company retirees who accused their former employer of unlawfully loading their 401(k) plan with costly investment options ended their bid to revive a class action, with the Third Circuit signing off on the dismissal.
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December 16, 2024
The Biggest Massachusetts High Court Rulings Of 2024
Massachusetts' highest court added two justices this year while taking up several novel legal issues, including one town's effort to phase out the sale of tobacco, a paralyzed Uber rider's fight against arbitration, and a dispute over whether a hospital website's use of tracking cookies violates the state wiretap statute.
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December 16, 2024
11th Circ. Won't Kick Starbucks Benefits Case To Arbitration
The Eleventh Circuit affirmed Monday that Starbucks can't force a former employee's husband to arbitrate a proposed class action claiming the coffee giant unlawfully failed to tell him about continuing health benefit options after his wife was fired, saying he wasn't bound by the terms of his spouse's employment agreement.
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December 13, 2024
Labaton Keller To Lead ZoomInfo Investor Class Action
Labaton Keller Sucharow LLP and Byrnes Keller Cromwell LLP will represent a proposed class of investors in litigation alleging software and data company ZoomInfo hurt investors after making missteps in an effort to retain new pandemic-era customers and ultimately writing down $33 million because of improperly recognized revenue.
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December 13, 2024
Del. Chancellor Positions Musk Pay Fight For Likely Appeal
Delaware's chancellor positioned for likely appeals late Friday final pieces of a landmark six-year battle over Tesla Inc.'s attempt to award CEO Elon Musk a more than $55 billion, 10-year pay package, in a trio of orders that also directed the company to pay in cash or post sufficient bond for a $345 million stockholder attorney fee.
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December 13, 2024
Insurer Argo Beats Investor Suit Over Reserve Estimate Risks
A New York federal judge has dismissed a proposed investor class action against Argo Group International Holdings Ltd. and its executives, finding that the insurance firm adequately disclosed the risks and uncertainties in its reserve estimations and that a 2017 review of underwriting guidelines did not contradict its reserve management statements.
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December 13, 2024
Supreme Court To Review Wis. Catholic Charity Tax Case
The U.S. Supreme Court plans to examine whether a group of Catholic charities is exempt from Wisconsin's unemployment tax, agreeing Friday to review a state Supreme Court finding that the organizations are not operated primarily for religious purposes.
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December 13, 2024
Retirees Say Lumber Co.'s $1.5B Pension Transfer Upped Risk
A wood product manufacturer violated federal benefits law when it transferred $1.5 billion of pension obligations to a private equity-backed insurance company, substantially increasing the risk that retirees will see their benefits slashed, according to a proposed class action filed in federal court.
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December 13, 2024
Texas AG Sues NY Doctor Over Telehealth Abortion Script
Texas Attorney General Ken Paxton sued a New York doctor who founded the Abortion Coalition for Telemedicine in the Lone Star State Friday, accusing the physician of violating Texas state abortion laws by providing abortion-inducing prescription drugs to a Texas resident via telehealth.
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December 13, 2024
Holland & Knight Faces DQ Bid In Ga. Spine Center 401(k) Suit
Holland & Knight LLP should be disqualified from representing doctors suing Polaris Spine and Neurosurgery PC in Georgia federal court because the law firm previously served as its corporate counsel, the Atlanta-area practice and one of its doctors argued Thursday.
Expert Analysis
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9th Circ. Ruling Puts Teeth Into Mental Health Parity Claims
In its recent finding that UnitedHealth applied an excessively strict review process for substance use disorder treatment claims, the Ninth Circuit provided guidance on how to plead a Mental Health Parity and Addiction Equity Act violation and took a step toward achieving mental health parity in healthcare, says Mark DeBofsky at DeBofsky Law.
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Del. Match.com Ruling Maintains Precedent In Time Of Change
Despite speculation that the Delaware Supreme Court could drive away corporations if it lowered the bar for business judgment review in its Match.com stockholder ruling, the court broke its recent run of controversial precedent-busting decisions by upholding, and arguably strengthening, minority stockholder protections against controller coercion, say Renee Zaytsev and Marc Ayala at Boies Schiller.
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Inside OMB's Update On Race And Ethnicity Data Collection
The Office of Management and Budget's new guidelines for agency collection of data on race and ethnicity reflect societal changes and the concerns of certain demographics, but implementation may be significantly burdensome for agencies and employers, say Joanna Colosimo and Bill Osterndorf at DCI Consulting.
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Series
Whitewater Kayaking Makes Me A Better Lawyer
Whether it's seeing clients and their issues from a new perspective, or staying nimble in a moment of intense challenge, the lessons learned from whitewater kayaking transcend the rapids of a river and prepare attorneys for the courtroom and beyond, says Matthew Kent at Alston & Bird.
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This Earth Day, Consider How Your Firm Can Go Greener
As Earth Day approaches, law firms and attorneys should consider adopting more sustainable practices to reduce their carbon footprint — from minimizing single-use plastics to purchasing carbon offsets for air travel — which ultimately can also reduce costs for clients, say M’Lynn Phillips and Lisa Walters at IMS Legal Strategies.
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Management Incentives May Be Revisited After PE Investment
As the economic climate shifts, key parties in private equity investment transactions may become misaligned, and management incentive plans could become ineffective — so attentive boards may wish to caucus with management to evaluate continued alignment, say Austin Lilling and Nida Javaid at Morgan Lewis.
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Practicing Law With Parkinson's Disease
This Parkinson’s Awareness Month, Adam Siegler at Greenberg Traurig discusses his experience working as a lawyer with Parkinson’s disease, sharing both lessons on how to cope with a diagnosis and advice for supporting colleagues who live with the disease.
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Series
Playing Hockey Makes Me A Better Lawyer
Nearly a lifetime of playing hockey taught me the importance of avoiding burnout in all aspects of life, and the game ultimately ended up providing me with the balance I needed to maintain success in my legal career, says John Riccione at Taft.
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For Lawyers, Pessimism Should Be A Job Skill, Not A Life Skill
A pessimistic mindset allows attorneys to be effective advocates for their clients, but it can come with serious costs for their personal well-being, so it’s crucial to exercise strategies that produce flexible optimism and connect lawyers with their core values, says Krista Larson at Stinson.
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Opinion
Requiring Leave To File Amicus Briefs Is A Bad Idea
A proposal to amend the Federal Rules of Appellate Procedure that would require parties to get court permission before filing federal amicus briefs would eliminate the long-standing practice of consent filing and thereby make the process less open and democratic, says Lawrence Ebner at the Atlantic Legal Foundation and DRI Center.
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2 Recent Suits Show Resiliency Of Medicare Drug Price Law
Though pharmaceutical companies continue to file lawsuits challenging the Inflation Reduction Act, which enables the federal government to negotiate for lower prescription drug prices, recent decisions suggest that the reduced drug prices are likely here to stay, says Jose Vela Jr. at Clark Hill.
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4 Ways To Motivate Junior Attorneys To Bring Their Best
As Gen Z and younger millennial attorneys increasingly express dissatisfaction with their work and head for the exits, the lawyers who manage them must understand and attend to their needs and priorities to boost engagement and increase retention, says Stacey Schwartz at Katten.
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How American Airlines ESG Case Could Alter ERISA Liability
Spence v. American Airlines, a Texas federal case over the airline's selection of multiple investment funds in its retirement plan, threatens to upend the Employee Retirement Income Security Act's legal framework for fiduciary liability in the name of curtailing environmental, social and governance-related activities, say attorneys at Mayer Brown.
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Series
Serving As A Sheriff's Deputy Made Me A Better Lawyer
Skills developed during my work as a reserve deputy — where there was a need to always be prepared, decisive and articulate — transferred to my practice as an intellectual property litigator, and my experience taught me that clients often appreciate and relate to the desire to participate in extracurricular activities, says Michael Friedland at Friedland Cianfrani.
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Former Minn. Chief Justice Instructs On Writing Better Briefs
Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.