Finance & Banking, Business Torts, Labor & Employment Law

Sixth Circuit: Plan Fiduciary Reasonably Relied On Benefit Calculations In Communicating To Participant

by Jacklina Len | Proskauer - ERISA Practice Center on 5/23/2013

The Sixth Circuit recently rejected a participant’s claim that a benefit estimate should override the specific benefit promised under the terms of the plan. In Stark v. Mars Inc., No. 12-3956, 2013 WL 1908889 (6th Cir. May 9,...more

Investment Management Legal + Regulatory Update -- May 2013

by Luke T. Bagley, Jay G. Baris, Thomas M. Devaney, Kelley A. Howes, Robert E. Putney, III, Isabelle Sajous | Morrison & Foerster LLP on 5/17/2013

In This Issue: Regulatory Updates - SEC Allows Limited Use of Social Media for Public Disclosure; Federal Reserve Board Publishes a Final Rule Specifying when Nonbank Firms are “Predominantly Engaged in...more

Second Circuit Further Curtails Duty of Prudence Claims in Saint Vincent Catholic Medical Centers v. Morgan Stanley

by Jennifer Clark, Angelo Savino | Cozen O'Connor on 5/8/2013

In a line of recent cases, the 2nd Circuit has limited ERISA plaintiffs’ claims for breach of the duty of prudence by holding that investments of benefit plan funds in employer securities pursuant to plans calling for such...more

Court Upholds Validity of ERISA Fiduciary Indemnification

by David Ackerman, John Kober | Morgan Lewis on 5/7/2013

Ruling rejects DOL challenge of an agreement by a 100% ESOP-owned company to advance defense costs and indemnify a trustee....more

SEC Dings Investment Adviser for Custody Violations, Failure to Supervise

by David Smyth, Elizabeth Spainhour | Brooks Pierce on 5/3/2013

Readers of this space – and SEC observers generally – will recall a March 4 risk alert designed to warn investors about the ways U.S. investment advisers had recently been found to have violated the SEC’s asset custody rule....more

De-Risking On Trial? U.S. Verizon Litigation Still Active

by Carol Buckmann | Osler, Hoskin & Harcourt LLP on 4/12/2013

In our March 13 webinar on de-risking defined benefit pension plans, I stated that the U.S. litigation launched by a group of Verizon retirees challenging the annuitization of their pensions was not dead, even though a...more

Ninth Circuit Decides Selection Of Retail Mutual Funds Was A Breach Of Fiduciary Duty

by Jeffrey P. Cairns | Leonard, Street and Deinard - Employee... on 4/2/2013

On March 21, 2013 the Ninth Circuit Court of Appeals issued its opinion in Tibble v. Edison International, in which the Court ruled that the plan fiduciaries of the Edison 401(k) Savings Plan (the “Plan”) had breached their...more

U.S. Supreme Court Invites Solicitor General’s Views on Whether to Grant Review of Case Addressing Two Key Issues in ERISA...

by Paul Flum, Raymond Hasu | Morrison & Foerster LLP on 4/1/2013

On March 25, 2013, the U.S. Supreme Court invited the U.S. Solicitor General to express its views on whether the Court should grant a certiorari petition in Dudenhoeffer v. Fifth Third Bancorp, et al., No. 12-751. Although...more

Court Rewrites Plan to Increase Benefits

by King & Spalding on 3/29/2013

The Supreme Court’s 2011 CIGNA v. Amara decision suggested that an employer’s pension plan could be rewritten to remedy the employer’s failure to fulfill its disclosure obligations under the Employee Retirement Income...more

Ninth Circuit Rules on Breach of Fiduciary Duty Claim in Investment Options Case

by Anthony Cacace | Proskauer - ERISA Practice Center on 3/29/2013

In Tibble v. Edison Int’l, 10-cv-56406, 2013 WL 1174167 (9th Cir. Mar. 21, 2013), the Ninth Circuit Court of Appeals ruled that 401(k) plan fiduciaries breached their duty of prudence in selecting investment options for the...more

Third Circuit: Securities Fraud Liability May Be Imputed To Employer Whose Employee Ran Ponzi Scheme On The Side

by M. Duncan Grant, William Liess | Pepper Hamilton LLP on 3/12/2013

On February 22, 2013, in the precedential opinion in Belmont v. MB Inv. Partners, Inc., a unanimous panel of the U.S. Court of Appeals for the Third Circuit (Judges Anthony J. Scirica, D. Michael Fisher and Kent A. Jordan)...more

The SEC Speaks: Reflections and Enforcement Initiatives in 2013

by Randall Fons, Brian Hoffman, Tiffany Rowe | Morrison & Foerster LLP on 3/6/2013

Each year at The SEC Speaks, the Commissioners and senior leadership of the Securities and Exchange Commission identify the agency’s priorities and initiatives for the coming year. Of course, one of the most anticipated...more

Obligations To Pensioners In An Insolvency: Supreme Court Clarifies The Law

by Mary Picard | Dentons on 2/4/2013

The Supreme Court of Canada overturned the Ontario Court of Appeal today in what is one of the most highly-anticipated cases for the pension and insolvency bars pending before the courts. In Indalex (Re) 2013 SCC 6, the court...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Executive Compensation and Benefits Alert: Annual Meeting Litigation: How to Prepare"

by Michael R. Bergmann, Emily Cabrera, Kristin M. Davis, Berit R. Freeman, Neil M. Leff, Barbara R. Mirza, Alessandra K. Murata, Timothy Nelson, Regina Olshan, David C. Olstein, Erica Schohn, more +Joseph M. Yaffe | Skadden, Arps, Slate, Meagher & Flom LLP on 1/17/2013

As the 2013 proxy season is now underway, companies should be aware of the recent wave of lawsuits alleging breaches of fiduciary duties by management and directors in connection with compensation-related decisions. These...more

Wage Rounding Policies for California Employers

by Peter Bauman - Senior Associate at Tharpe &... on 11/19/2012

If your company rounds employee work time up or down as part of its record keeping and time tracking procedures for calculating hours and pay, a recent California appellate court provided additional support for the...more

Supreme Court Allows Favorable Employer Stock Ruling to Stand

by Katten Muchin Rosenman LLP on 11/8/2012

The US Supreme Court recently declined to review the “stock drop” cases decided late last year by the US Court of Appeals for the Second Circuit involving Citigroup and McGraw-Hill. Patrick L. Gearren, et al. v. The...more

Supreme Court Denies Review of Second Circuit Cases Adopting Moench Presumption for Fiduciaries of ERISA-Governed Plans

by Ballard Spahr LLP on 10/26/2012

The U.S. Supreme Court recently refused to grant certiorari for two 2011 Second Circuit stock drop decisions that had adopted the “Moench presumption” for determining whether fiduciaries imprudently invested assets in...more

Why Does CalPERS Need Insider Trading Rules?

by Allen Matkins Leck Gamble Mallory & Natsis... on 10/19/2012

Last Spring, I wrote that the California Public Employees Retirement System was considering adoption of regulations governing personal trading by members of its Board of Administration and employees. These regulations are...more

District Courts in the Fourth Circuit Run Full Speed Ahead with Equitable Estoppel Claims

by Womble Carlyle Sandridge & Rice, PLLC on 10/15/2012

Executive Summary: District Courts in Fourth Circuit allow ERISA claims to go forward premised on oral representations. Prior to Cigna v. Amara, 131 S. Ct. 1866 (2011), the law was clearly established: An employee...more

Citigroup Settles RMBS Class Action Lawsuit for Nearly $25 Million

by Orrick - Structured Finance Group on 9/7/2012

On August 27, lead plaintiffs City of Ann Arbor Employees’ Retirement System and Greater Kansas City Laborers Pension Fund submitted an unopposed motion seeking preliminary approval of a settlement of claims against certain...more

More 401(k) Plan Fee Disclosures: What To Do By August 30

by Osler, Hoskin & Harcourt LLP on 8/13/2012

For many years, critics of the current 401(k) fee system have claimed that high fees were hidden and not clearly disclosed by vendors. Plaintiffs in class action litigation have seized on this murky area and have been...more

US$693 Million RMBS Case Against Goldman Sachs Settled for US$26.6 Million

by Orrick - Structured Finance Group on 8/6/2012

On July 31, the Public Employees’ Retirement System of Mississippi moved for approval of a US$26.6 million settlement of an RMBS class action pending before Judge Baer of the Southern District of New York. Plaintiffs asserted...more

RMBS Cases Against UBS Dismissed as Time-Barred

by Orrick - Structured Finance Group on 8/6/2012

On July 31, Judge Cecchi of the District of New Jersey dismissed with prejudice as time-barred claims filed by the Pension Trust Fund for Operating Engineers alleging misstatements and omissions in the offering documents for...more

Corporate and Financial Weekly Digest -- August 3, 2012

by Katten Muchin Rosenman LLP on 8/6/2012

In this issue: - FINRA and ISG Postpone Effective Dates for Enhanced Electronic Blue Sheet Submission - ICE Announces Plans to Transition Swaps to Futures Contracts - CFTC Roundtable to Discuss Customer...more

Qualified Default Investment Alternative Safe Harbor Upheld

by Morgan Lewis on 7/30/2012

Sixth Circuit finds that plan fiduciaries did not breach their duties when participants' investments were transferred to the plan's default fund without their explicit consent....more

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Finance & Banking › Business Torts › Labor & Employment Law