Motion to Dismiss ERISA Retained Asset Account Claims Denied


A federal judge in Massachusetts last week denied the insurer’s motion to dismiss ERISA claims challenging retained asset account practices. Luitgaren v. Sun Life Assurance Company of Canada, et al., No. 1:09-cv-11410-NG. (Please click here for the order.)

Plaintiff brought a putative class action on behalf of beneficiaries of ERISA life insurance plans who received their benefits from Defendants through retained asset accounts. Plaintiff alleged that Defendants breached fiduciary duties in violation of section 404(a) of ERISA (29 U.S.C. § 1104(a)) by investing retained assets for their own benefit. Plaintiff also alleged that the retained assets constituted plan assets within the meaning of ERISA and that Defendants’ investment of those assets constituted prohibited transactions in violation of section 406(b)(1) of ERISA (29 U.S.C. § 406(b)(1)).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Eversheds Sutherland (US) LLP | Attorney Advertising

Written by:


Eversheds Sutherland (US) LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.