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En Banc Sixth Circuit Rules Against Disgorgement Remedy in Benefits Case

In Rochow v. Life Insurance Company of North America, No. 12-2074 (6th Cir. March 5, 2015), the U.S. Court of Appeals for the Sixth Circuit, sitting en banc, ruled that an insurance company that wrongfully denied benefits to...more

Second Circuit Revisits Remedies In Amara v. Cigna

The Second Circuit court of appeals held that a court can exercise its equitable powers to reform the terms of a cash balance retirement plan to provide greater benefits than stated in response to material misstatements made...more

Maine to Pay Out $142,500 to Settle Whistleblower Suit

The state Department of Health and Human Services in Maine will pay $142,500 to a former employee as a part of a settlement for a federal whistleblower suit. That employee is Sharon Leahy-Lind, who was at one time a...more

Indianapolis Hampton Inn Operators Held in Contempt for Breaching EEOC Consent Decree Settling Earlier Class Race Bias Suit

Federal Court Also Rules That EEOC Is Entitled to Submit a Petition for Fees and Costs. INDIANAPOLIS - A federal judge has held that the operators of the Hampton Inn on Shadeland Avenue in Indianapolis in contempt for...more

Texas Supreme Court Argument Preview - 3/15

On Thursday, March 26, 2015, the Supreme Court of Texas will hear argument in three cases. - No. 13-1026, Royston, Rayzor, Vickery & Williams LLP v. Lopez - The Petitioner law firm seeks to enforce an arbitration...more

Plan Sponsor Agrees to $62 Million Settlement in ERISA Case Challenging 401(k) Plan Fees

Lockheed Martin Corp. has settled the 401(k) excessive fee litigation pending against it in federal court in Illinois....more

Disgorgement of Profits Not Available for Arbitrary and Capricious Benefits Denial – This Time

Wrongful denial of employee benefits will not expose plan fiduciaries to equitable remedies – such as disgorgement of profits – where restoration of benefits is adequate to make the claimant whole, says the Sixth Circuit in...more

New Tools for Companies Against Cybercrime

Obama administration proposal would reduce legal ambiguities and allow civil RICO claims. On January 2015, the Obama administration announced a series of proposals to strength­en the country’s response to...more

SEC’s Limit on Retroactivity of Dodd-Frank Whistleblower Bounty Awards Is Reasonable, Second Circuit Holds

The Second Circuit Court of Appeals recently deferred to the SEC’s determination that a tipster who provided information to the Commission before July 21, 2010, the effective date of the Dodd-Frank Act, is not eligible to...more

Failure to Comply with Terms of EEOC Consent Order Costs Employer $400,000 in Agency's Costs

Under federal civil rights laws, one major difference between suits brought by the Equal Employment Opportunity Commission and private parties involves liability for attorney’s fees. Losing employers must pay the prevailing...more

The Internship 2: Now Paid? Viacom Pays Record Settlement on Intern Lawsuit

Viacom recently announced a settlement of $7.2 million dollars to end litigation by numerous unpaid interns for the Company’s television networks. In 2013, two former interns sued Viacom claiming that it violated the Fair...more

Employer Violates Public Policy by Retaliating against "Perceived" Whistleblower

A recent California court decision highlighted the importance of getting your facts straight before taking action against an employee. The ruling stemmed from a retaliation lawsuit brought by a woman whose former employer...more

Dignity Health Pays $37 Million After Claims of Overbilling

Major whistleblower claims have been occurring in a wide variety of industries lately. One of the industries in which fraud is most prevalent is the health care industry, and this past fall an instance of fraud cost a...more

Sixth Circuit Rejects Claim that Disgorgement of Profits Is Appropriate Remedy in ERISA Benefit Denial Action

On March 5, 2015, the U.S. Court of Appeals for the Sixth Circuit, sitting en banc in the matter of Rochow v. Life Insurance Company of North America, 2015 WL 925794 (6th Cir. Mar. 5, 2015), reversed the finding of a prior...more

SEC Awards $500K to Company Officer Whistleblower

On Monday, March 2, the Securities and Exchange Commission (SEC) announced that it will award between $475,000 and $575,000 to a corporate officer who reported “high quality, original information” about a securities fraud....more

$90 Million Judgment In Favor Of Security Guards Who Remained On Call During Rest Breaks Is Reversed

In this class action lawsuit, plaintiffs alleged that ABM did not provide rest periods to its security guard employees because it failed to relieve them of all duties and required them to remain on call during their breaks....more

Attorney General Madigan and Labor Unions Defend Fair Share Fees

Over the past several weeks, Illinois’ largest labor unions and Attorney General Lisa Madigan took steps to defend “fair share” fees against Governor Rauner’s Executive Order suspending the collection of those fees, and his...more

$15 Million Awarded to Former Employees For Harassment and Discrimination

A trucking and ground support services company is paying dearly for alleged employee discrimination and harassment. Last month, a jury awarded nearly $15 million to seven former employees who sued the company over practices...more

Two Former Capital One Employees Who Traded On Customer Data, Consent to Preliminary Injunction

Insider trading cases are built on two basic theories. Under the traditional, classic model, a corporate insider uses material, non-public information obtained from his or her employer to trade in shares of the company –...more

Employer Found to Have Violated Consent Decree; Ordered to Pay EEOC’s Attorney Fees

The EEOC recently announced that it was awarded nearly half a million dollars in attorney fees after a court found that an employer (the Jewel-Osco grocery store chain) violated a consent decree....more

Governor LePage Pushes Right to Work Legislation

Governor Paul LePage is aggressively pushing LD 489, An Act to Ensure the Right to Work without Payment of Dues or Fees to a Labor Union as a Condition of Employment. Current law allows public employees to opt out of joining...more

Are Restrictive Covenants in Sale Agreements Enforceable?

The Supreme Court of Canada recently addressed the issue of the enforceability of restrictive covenants where the purchaser of a business offered employment to the business’s previous owners (Payette v Guay Inc. 2013 SCC 45)....more

Federal Court Holds That Immigration Law Does Not Preclude FLSA Liquidated Damages Award

In many ways, federal immigration laws and various labor and employment laws, including the FLSA, may appear fundamentally at odds with each other: prohibiting work by undocumented workers on one hand, but allowing them to...more

ERISA: 6th Circuit — Plop Plop, Fizz Fizz: Oh What A RELIEF It Is: No Disgorgement For Arbitrary Denial Of Benefits

Does an arbitrary and capricious denial of ERISA governed disability benefits create a right to disgorgement of profits? NO....more

Revisiting Rochow: The Sixth Circuit Rejects Earlier $3.8 Million Equitable Award in Recent En Banc Decision

Just over a year ago, a panel decision by the Sixth Circuit Court of Appeals in Rochow v. Life Insurance Company of North America, 737 F.3d 415 made big news when the court upheld the district court’s award of $3.8 million in...more

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