The Fifth Circuit recently reversed a district court’s dismissal of claims that the fiduciaries of a 401(k) plan breached the duty of prudence under ERISA by offering participants retail share classes instead of cheaper...more
5/9/2024
/ 401k ,
Article III ,
Class Action ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fees ,
Fiduciary ,
Investment ,
Recordkeeping Requirements ,
Retirement Plan ,
Reversal ,
Share Classes ,
Standing
A third district court has dismissed with prejudice a complaint alleging that defendants breached their fiduciary duties under ERISA by offering 401(k) plan participants the option to invest in BlackRock LifePath Index Target...more
As plan sponsors and fiduciaries cope with the increased volume of class action Employee Retirement Income Security Act (ERISA) lawsuits, some have considered the prospects of reducing their exposure through arbitration...more
4/25/2023
/ ADEA ,
Arbitration ,
Benefit Plan Sponsors ,
Breach of Duty ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement ,
Federal Arbitration Act ,
Fiduciary Duty ,
Retirement Plan ,
SCOTUS
Albert Einstein is famously credited with saying, "Insanity is doing the same thing over and over and expecting different results." This adage comes to mind as defense counsel continue to resort to the same strategies for...more
4/28/2022
/ 401k ,
403(b) Plans ,
Compensation & Benefits ,
Defense Strategies ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fiduciary Duty ,
Plausibility Standard ,
Retirement Plan ,
Share Classes
On Friday, for the second week in a row, the Ninth Circuit reversed dismissal of a 401(k) plan excessive fee litigation challenging the offering of retail share classes of mutual funds instead of cheaper institutional share...more
4/19/2022
/ 401k ,
Dismissals ,
Employee Benefits ,
Excessive Fees ,
Financial Services Industry ,
Investment Adviser ,
Mutual Funds ,
Retirement Plan ,
Reversal ,
Share Classes ,
Trader Joes
On Friday, the Ninth Circuit became the first circuit court to rule in a 401(k) plan fee and investment litigation following the Supreme Court’s January 2022 decision in Hughes v. Northwestern University, 142 S. Ct. 737...more
4/12/2022
/ 401k ,
Breach of Duty ,
Employee Benefits ,
Fees ,
Fiduciary Duty ,
Investment Management ,
Motion to Dismiss ,
Mutual Funds ,
Retirement Plan ,
Salesforce ,
Share Classes
In this episode of The Proskauer Benefits Brief, Myron D. Rumeld, partner and co-chair of Proskauer’s ERISA Litigation group and senior associate Tulio D. Chirinos, review the current state of affairs with respect to the...more
To the disappointment of many in the ERISA community, the Supreme Court issued a six-page opinion on January 24th that declined to opine on most of the issues that were before the Court in Hughes v. Northwestern University,...more
1/26/2022
/ 401k ,
403(b) Plans ,
Breach of Duty ,
Duty of Prudence ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fiduciary Duty ,
Hughes v. Northwestern University ,
Plan Participants ,
Pleading Standards ,
Retirement Plan ,
Tibble v Edison Int ,
Vacated
A federal district court in New York recently granted Omnicom Group Inc.’s (“Omnicom’s”) motion to dismiss, for lack of Article III standing, claims challenging the offering of investment options in Omnicom’s 401(k) plan in...more
8/10/2021
/ 401k ,
Article III ,
Breach of Duty ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fees ,
Fiduciary Duty ,
Investment Management ,
Investment Opportunities ,
Performance Standards ,
Retirement Plan ,
Standing
The Fifth Circuit affirmed the dismissal, for lack of standing, of a fiduciary breach representative action against American Airlines and its 401(k) plan investment committee. Ortiz v. American Airlines, Inc., No. 20-10817,...more
8/5/2021
/ 401k ,
American Airlines ,
Article III ,
Breach of Duty ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Investment Management ,
Investment Opportunities ,
Retirement Plan ,
Standing
One of the multitude of recent cases challenging the recordkeeping fees of 401(k) plans recently made its way to the Tenth Circuit Court of Appeals. Ramos v. Banner Health, No. 20-1231, — F.3d —- (10th Cir. June 11, 2021). ...more
On April 1, 2021, the Ninth Circuit became the third circuit court to conclude that a forum-selection clause in an ERISA 401(k) plan is enforceable. The Ninth Circuit thus denied a petition for mandamus seeking to overturn a...more
4/7/2021
/ 401k ,
Breach of Duty ,
Corporate Counsel ,
Duty of Loyalty ,
Duty of Prudence ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Forum Selection ,
Prohibited Transactions ,
Putative Class Actions ,
Retirement Plan ,
Venue ,
Writ of Mandamus
Editor’s Overview -
Of course, on the top of everyone’s minds these days is COVID-19. In this edition of Proskauer’s ERISA Newsletter, our colleagues discuss some of the legislation and guidance that has been issued over...more
Editor's Overview -
Happy New Year. We wrap-up 2019 with an article that reflects on significant developments in ERISA litigation during 2019, and takes a look at what's on the horizon for 2020. The courts (at all levels)...more
1/17/2020
/ 401k ,
Affordable Care Act ,
American Arbitration Association ,
Arbitration ,
Article III ,
Benefit Plan Sponsors ,
Best Practices ,
Breach of Duty ,
Cadillac Tax ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Liability Issues ,
Individual Mandate ,
Intel Corp. Investment Policy Committee v. Sulyma ,
IRS ,
Loss Causation ,
Multiemployer Plan ,
Pleading Standards ,
Retirement Plan ,
SCOTUS ,
Standing ,
Thole v U.S. Bank ,
Venue
In this edition of our Newsletter, we take a look at a pair of cases that, while unrelated, together remind us of the importance of having clear plan rules in place that reflect the plan sponsor’s intention. The first article...more
10/11/2019
/ 401k ,
403(b) Plans ,
Affordable Care Act ,
Benefit Plan Sponsors ,
Breach of Duty ,
Class Action ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Group Health Plans ,
Fiduciary Duty ,
Foreign Nationals ,
Hardship Distributions ,
Health Insurance ,
IRS ,
Mental Health Parity Rule ,
Multiemployer Pension Plan Amendments Act (MPPAA) ,
Pensions ,
Retirement Plan ,
Safe Harbors ,
Standing ,
Statute of Limitations ,
Withdrawal Liability
Editor's Overview -
As the summer heats up, so too has the U.S. Supreme Court's docket for next term where it has already agreed to hear three ERISA cases and more may be in the works. On the docket already are ERISA...more
7/16/2019
/ 401k ,
Affordable Care Act ,
Anti-Assignment Clauses ,
Benefit Plan Sponsors ,
Certiorari ,
Collective Bargaining Agreements (CBA) ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Federal Rules of Civil Procedure ,
Final Rules ,
HRA ,
IBM ,
Retirement Plan ,
Roth IRA ,
SCOTUS ,
Statute of Limitations ,
Stock Drop Litigation
Over the past several years, the ERISA plaintiffs’ bar has targeted university-sponsored 403(b) plans, arguing that the plan fiduciaries breached their fiduciary duties and engaged in prohibited transactions in connection...more
Editor's Overview -
In last quarter's Newsletter, we commented that all eyes were on President Trump's nomination to the U.S. Supreme Court, as the outcome of the appointment process can have a significant impact on the...more
10/3/2018
/ 401k ,
403(b) Plans ,
Attorney's Fees ,
Discovery ,
Electronically Stored Information ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Federal Rules of Civil Procedure ,
Fiduciary Duty ,
Fiduciary Rule ,
FRCP 26(b)(1) ,
Preemption ,
Recordkeeping Requirements ,
Retirement Plan ,
Standing
As we head into the thick of summer, all eyes are on President Trump's nomination to the U.S. Supreme Court to replace retiring Justice Anthony Kennedy and the impact the new Justice will have on shaping the law for...more
7/11/2018
/ 21st Century Cures Act ,
401k ,
403(b) Plans ,
Beneficiaries ,
Bi-Partison Balanced Budget Act (BBA) ,
Breach of Duty ,
Clawbacks ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
HDHP ,
Health Care Providers ,
Health Savings Accounts ,
Investment Adviser ,
Investment Management ,
IRS ,
MHPAEA ,
Murder ,
Plan Administrators ,
Preemption ,
Prescription Drugs ,
Retirement Plan ,
Slayer Statutes
Despite the change in seasons, there appears to be no change in the pace of complex and class action ERISA litigation. Investments in defined contribution plans—both 401(k) and 403(b) plans—continue to be the leading target...more
4/11/2018
/ 401k ,
Affordable Care Act ,
Benefit Plan Sponsors ,
Bi-Partison Balanced Budget Act (BBA) ,
Books & Records ,
Breach of Duty ,
Cadillac Tax ,
Department of Labor (DOL) ,
Disability Benefits ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Executive Compensation ,
Fiduciary Duty ,
Fiduciary Rule ,
Hardship Distributions ,
Investment Adviser ,
IRS ,
Multiemployer Pension Plan Amendments Act (MPPAA) ,
Mutual Funds ,
National Association for Fixed Annuities (NAFA) ,
Retirement Plan ,
Self-Dealing ,
Standing
Editor's Overview - As we have observed on other occasions, the ERISA class action plaintiffs' bar has, for several years now, honed in on 401(k) plan fiduciaries and their decisions to select and retain investment options...more
10/4/2017
/ 401k ,
403(b) Plans ,
AARP ,
Affordable Care Act ,
Breach of Duty ,
Class Action ,
Delays ,
Department of Labor (DOL) ,
Disability Benefits ,
Disclosure Requirements ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Mandates ,
Equal Employment Opportunity Commission (EEOC) ,
Excessive Fees ,
Executive Orders ,
Federal Rules of Civil Procedure ,
Fiduciary Duty ,
Fiduciary Rule ,
Form 5500 ,
GINA ,
Hardship Distributions ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Healthcare Reform ,
Hurricane Harvey ,
Individual Retirement Account (IRA) ,
Investors ,
IRS ,
Motion to Dismiss ,
OMB ,
PBGC ,
Pensions ,
Preventive Health Care ,
Principal Transaction Exemption ,
Retirement Plan ,
Self-Dealing ,
Twombly/Iqbal Pleading Standard ,
Universities ,
Wellness Programs
After a brief hiatus, Proskauer's ERISA Newsletter is back with a brand new look. We hope you like it and find it is easier to navigate. In addition to implementing our new format, we have moved to a quarterly publication...more
4/6/2017
/ 401k ,
403(b) Plans ,
Administrative Procedure Act ,
Aetna ,
Affordable Care Act ,
Alternative Pleadings ,
Benefit Plan Sponsors ,
Breach of Duty ,
Chamber of Commerce ,
Class Action ,
Class Certification ,
Collective Bargaining ,
Conflicts of Interest ,
Delays ,
Department of Labor (DOL) ,
Duty of Prudence ,
Employee Retirement Income Security Act (ERISA) ,
Exhaustion Doctrine ,
Fiduciary Duty ,
Fiduciary Rule ,
FIfth Third Bancorp v Dudenhoeffer ,
HRA ,
Insider Information ,
IRS ,
Lifetime Health Benefits ,
Mental Health Parity Rule ,
Notice Requirements ,
Pleading Standards ,
Preliminary Injunctions ,
Presidential Memorandum ,
Proposed Legislation ,
Public Disclosure ,
Qualified Small Employer Health Reimbursement Plan (QSEHRAs) ,
Repeal ,
Retirement Plan ,
Small Employers ,
Stock Drop Litigation ,
Trump Administration ,
Unilateral Modification ,
Vested Benefits
On March 1, 2017, the U.S. Department of Labor proposed a 60-day delay of the conflict of interest rule and related exemptions (currently set to be applicable on April 10, 2017). The Department opened two comment periods...more
Editor’s Overview -
In 2016, we saw a considerable uptick in the number and variety of excessive fee lawsuits commenced against plan fiduciaries of defined contribution plans. We begin the year by taking a look at these...more
1/31/2017
/ 401k ,
403(b) Plans ,
AARP ,
Americans with Disabilities Act (ADA) ,
Benefit Plan Sponsors ,
Breach of Duty ,
Class Action ,
Collective Bargaining ,
Defined Contribution Plans ,
Dismissals ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Group Health Plans ,
Equal Employment Opportunity Commission (EEOC) ,
Excessive Fees ,
Fiduciary Duty ,
Financial Adviser ,
GINA ,
Investment Funds ,
Irreparable Harm ,
Lifetime Health Benefits ,
Preliminary Injunctions ,
Reservation of Rights ,
Retirement ,
Retirement Plan ,
Revenue Sharing ,
Self-Dealing ,
Unions ,
Vesting ,
Wellness Programs
This month we review a recent Second Circuit decision addressing ERISA plan status as a class member in a securities shareholder class action. As discussed in the article, the decision exposes a potential conflict among the...more
12/1/2016
/ AARP ,
Administrative Procedure Act ,
Affordable Care Act ,
Americans with Disabilities Act (ADA) ,
Appeals ,
Best Interest Contract Exemptions ,
Budget Recollection Legislation ,
Class Action ,
Department of Labor (DOL) ,
Dismissals ,
Due Process ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Group Health Plans ,
Equal Employment Opportunity Commission (EEOC) ,
Fiduciary Duty ,
Fiduciary Rule ,
Filing Deadlines ,
GINA ,
Investment Adviser ,
IRS ,
National Association for Fixed Annuities (NAFA) ,
Preemption ,
Preliminary Injunctions ,
Presidential Elections ,
Repeal ,
Retirement Plan ,
Reversal ,
Securities Litigation ,
Shareholder Litigation ,
Slayer Statutes ,
Summary Judgment ,
Trump Administration ,
Wellness Programs