Defense counsel frequently lament the difficulties of defending 401(k) investment and recordkeeping fee litigation when different judges render conflicting rulings on motions to dismiss seemingly indistinguishable...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
On remand from the U.S. Supreme Court, the Seventh Circuit issued its opinion in Hughes v. Northwestern University, concluding that participants in two Northwestern 403(b) plans plausibly pled fiduciary-breach claims based on...more
4/4/2023
/ 403(b) Plans ,
Breach of Duty ,
Class Action ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fiduciary Duty ,
Hughes v. Northwestern University ,
Investment Management ,
Northwestern University ,
Pleading Standards ,
Recordkeeping Requirements ,
SCOTUS
In a striking reversal of approach beginning in the summer of 2022, the District Court for the Eastern District of Wisconsin went from denying, in whole or in part, virtually every motion to dismiss ERISA lawsuits targeting...more
2/2/2023
/ 401k ,
403(b) Plans ,
Class Action ,
Corporate Counsel ,
Dismissals ,
Employee Retirement Income Security Act (ERISA) ,
Fees ,
Hughes v. Northwestern University ,
Investment ,
Revenue Sharing ,
SCOTUS
The Seventh Circuit recently provided a ray of sunshine in what has largely been a gloomy stretch for plan sponsors and fiduciaries defending ERISA breach of fiduciary duty claims based on allegedly excessive investment and...more
9/8/2022
/ 401k ,
Benefit Plan Sponsors ,
Breach of Duty ,
Class Action ,
Dismissals ,
Employee Retirement Income Security Act (ERISA) ,
Fees ,
Fiduciary Duty ,
Hughes v. Northwestern University ,
Motion for Summary Judgment ,
SCOTUS
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
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
In a decision watched closely by both employers and unions, a unanimous Supreme Court has resolved a thirty-plus year split among the circuit courts on the standards governing claims for retiree health-care benefits arising...more
Editor's Overview -
As it is well known, in Cigna Corp. v. Amara, 131 S. Ct. 1866 (2011), the U.S. Supreme Court identified several forms of appropriate equitable relief that may be available under Section 502(a)(3) of...more
11/19/2014
/ ADEA ,
Choice-of-Venue ,
CIGNA v Amara ,
Compensatory Awards ,
Employee Retirement Income Security Act (ERISA) ,
Employer Group Health Plans ,
Employer Liability Issues ,
Equitable Estoppel ,
Equitable Relief ,
Equitable Surcharge ,
FSA ,
IRS ,
Life Insurance ,
Reformation ,
SCOTUS
Editor's Overview -
The end of the U.S. Supreme Court's term brought two significant ERISA decisions. The first concerns the standard of review that courts apply when evaluating ERISA stock-drop claims. As discussed...more
7/17/2014
/ Affordable Care Act ,
Burwell v Hobby Lobby ,
Contraceptive Coverage Mandate ,
Employee Retirement Income Security Act (ERISA) ,
Employer Mandates ,
FIfth Third Bancorp v Dudenhoeffer ,
Hobby Lobby ,
Mental Health Parity Rule ,
Religious Exemption ,
Religious Freedom Restoration Act (RFRA) ,
SCOTUS ,
Stock Drop Litigation
For over two decades, federal courts have embraced the so-called Moench presumption of prudence in ERISA stock-drop cases. Pursuant to that presumption, courts have routinely dismissed such claims absent allegations in a...more
As Amy Covert and Aaron Feuer discuss below, the U.S. Supreme Court granted certiorari in Heimeshoff v. Hartford Life & Accident Insurance Co. where it is expected to rule next term on whether plan sponsors may dictate in the...more
7/12/2013
/ Affordable Care Act ,
Certiorari ,
Compensation & Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fees ,
Form 720 ,
Hartford Life and Accident Insurance Company ,
Heimeshoff v. Hartford Life & Accident Insurance Co. ,
Insurance Industry ,
PCORI ,
SCOTUS ,
Statute of Limitations
This month our articles focus on the availability of damages in complex ERISA class actions and withdrawal liability actions. Jackie Len first provides Proskauer's perspective on the implications for ERISA litigation arising...more
5/13/2013
/ 403(b) Plans ,
Affordable Care Act ,
Class Action ,
Class Certification ,
Comcast v. Behrend ,
Damages ,
Disclosure Requirements ,
Employee Retirement Income Security Act (ERISA) ,
Heimeshoff v. Hartford Life & Accident Insurance Co. ,
IRS ,
Multiemployer Plan ,
Pensions ,
Private Equity Funds ,
SCOTUS ,
Statute of Limitations ,
Sun Capital Partners ,
Transparency ,
Waivers
Today, the U.S. Supreme Court issued its ruling in U.S. Airways, Inc. v. McCutchen in which the Court unanimously ruled that a clearly drafted reimbursement clause will trump all equitable defenses....more