News & Analysis as of

Breach of Duty Retirement Plan

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Clorox forfeiture case goes forward

The U.S. District Court for the Northern District of California has decided not to dismiss a class action lawsuit against The Clorox Company and the employee benefits committee of The Clorox Company 401(k) Plan. The lawsuit...more

Morris, Manning & Martin, LLP

A Plan Win in an ESG Case … For the Most Part

A New York Appellate court affirmed a dismissal of a fiduciary breach claim against the New York City Employees’ Retirement System, Teachers’ Retirement System of the City of New York, and Board of Education Retirement System...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

American Airlines gets split decision loss in ESG lawsuit

A Texas federal district court ruled that American Airlines breached its fiduciary duty of loyalty, but not its fiduciary duty of prudence, in allowing its $26 billion 401(k) plan to be influenced by environmental, social,...more

Mintz - Energy & Sustainability Viewpoints

Sustainable Energy & Infrastructure Litigation Updates — February 2025

Following a bench trial, on January 10, 2025, Judge Reed O’Connor of the US District Court of the Northern District of Texas held that the managers of a company’s 401(k) retirement plans had breached their fiduciary duty by...more

Carlton Fields

Insurer Allowed to Benefit From Foreign Tax Credits Distributed by Underlying Funds

Carlton Fields on

The Eleventh Circuit Court of Appeals recently held that a life insurance company did not breach its fiduciary duties by retaining the benefits that it derived from foreign tax credits. The plaintiffs argued that, under...more

Pullman & Comley - Labor, Employment and...

Retirement Plan Update – Forfeitures are New Focus of Fiduciary Breach Litigation

Many employer-sponsored defined contributions plans, including 401(k) profit sharing plans and money purchase pension plans include a vesting schedule – a period over which a plan participant earns a nonforfeitable right to...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Picking the cheapest provider can be a breach of fiduciary

When it comes to health and fitness, you constantly hear studies about what foods fight or cause cancer. Of course, those studies are then debunked. I remember how oat bran was cited to cut down on cholesterol and how...more

Seyfarth Shaw LLP

The DOL May Not Actually Want to Hear From You: New Guidance Streamlining the Voluntary Fiduciary Correction Program

Seyfarth Shaw LLP on

The DOL updated its voluntary fiduciary correction program (“VFCP”) which was introduced over 20 years ago to allow plan sponsors to corrected enumerated fiduciary breaches. The amended VFCP now allows for self-correction of...more

Jackson Walker

Texas District Court’s Decision in 401(k) Case Has Wide-Ranging Implications for Plan Fiduciaries

Jackson Walker on

On January 10, 2025, the U.S. District Court for the Northern District of Texas issued an opinion in Spence v. Am. Airlines, Inc. (N.D. Tex. Jan. 10, 2025) holding that fiduciaries of two American Airlines 401(k) plans...more

Proskauer - Employee Benefits & Executive...

401(k) Plan Fiduciaries Breached ERISA’s Duty of Loyalty By Allowing ESG Interests To Influence Management Of The Plan

Last week, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas, issued the first-of-its-kind ruling on the merits pertaining to environmental, social, and corporate governance (“ESG”) investing...more

Miller Canfield

American Airlines Breaches Fiduciary Duty of Loyalty with BlackRock ESG Funds in 401(k) Plans

Miller Canfield on

Whether, and the extent to which, a plan fiduciary can consider nonpecuniary environmental, social and governance (“ESG”) objectives in selecting plan investments has been a hot-button issue for many years, with the view on...more

Ropes & Gray LLP

Practical Takeaways from Spence v. American Airlines, Inc. for ERISA Plan Fiduciaries

Ropes & Gray LLP on

On January 10, 2025, Judge Reed O’Connor of the Northern District of Texas issued a much-anticipated ruling in Spence v. American Airlines, Inc., which marks the first time that a federal judge has written an on-the-merits...more

Mintz

Federal Court Rules ESG-Guided Investing of 401(k) Plan Is a Breach of Fiduciary Duty

Mintz on

Following a bench trial, Judge O'Connor (N.D. Tex.) held that “that Defendants breached their fiduciary duty by failing to loyally act solely in the retirement plan's best financial interests by allowing their corporate...more

JAMS

Recent Developments in the Enforcement of ERISA Class Action Waiver and Arbitration Clauses

JAMS on

In recent months, various federal district and circuit courts have considered the enforceability of language in employer-sponsored retirement and welfare plans requiring that participants arbitrate their claims for breach of...more

Morgan Lewis - ML Benefits

US Supreme Court Agrees to Hear Recordkeeping Fees Case Against Cornell University

In 2017, several private universities were hit with ERISA class actions alleging various breaches of fiduciary duty and prohibited transactions—including claims that these universities’ defined contribution plans charged...more

Holland & Knight LLP

Supreme Court Urged to Resolve Split on ERISA Standing Requirements in Excessive Fee Cases

Holland & Knight LLP on

Chavez v. Plan Benefit Services, Inc., 108 F.4th 297 (5th Cir. 2024), began when three employees of a single employer sued the service providers of their health and welfare benefit plan for allegedly charging excessive fees...more

Keating Muething & Klekamp PLL

Benefits Monthly Minute - October 2024

The October Monthly Minute highlights two recent retirement plan cases, one in which the court sides with the plan and emphasizes plan administrative review over specific investment results and another where plaintiffs are...more

Goodwin

Supreme Court Grants Review in ERISA Class Action Challenging Plan Sponsor’s Recordkeeping Arrangement

Goodwin on

Key takeaway: The Supreme Court granted certiorari to address the pleading standards for prohibited-transaction claims under 29 U.S.C. § 1106(a). On October 4, 2024, the Supreme Court granted certiorari in Cunningham v....more

Groom Law Group, Chartered

A Growing Trend: Fiduciary Secures Trial Victory in Excessive Fee Litigation

Introduction - On August 22, 2024, the Central District of California found in favor of the defendants after a bench trial on breach of fiduciary duty claims related to the monitoring of recordkeeping expenses and...more

Carlton Fields

Second Circuit Rejects Enforcement of Class Waiver and Arbitration Agreement Under FAA, Finds That Provisions Impermissibly...

Carlton Fields on

The plaintiff sued the trustee of his retirement plan, his former employer, and others for breach of fiduciary duties in connection with the plan’s purchase of shares of the employer’s parent company for more than fair market...more

McAfee & Taft

Gavel to Gavel: Fiduciary committees offer shield against welfare plan litigation

McAfee & Taft on

Investment and administrative committees for employer-sponsored retirement plans have long been the gold standard for a company to carry out its fiduciary obligations to plan participants as required by the Employee...more

Jackson Lewis P.C.

Health Plan Hygiene Part 1: A Spoonful of Sugar Helps the Medicine Go Down

Jackson Lewis P.C. on

During the next several weeks, we will publish a series of articles that dive deeply into “health plan hygiene” relating to health and welfare benefit plan fiduciary issues and how employers can protect themselves in this...more

Morgan Lewis - ML Benefits

Stick to the (ERISA) Plan

The backbone of a fiduciary’s duties is the written plan document: understanding the key terms and adhering to them provides a bulwark against fiduciary breach. ERISA Sections 402(a)(1) and 404(a)(1)(d) require that every...more

Mayer Brown

Northern District of Texas Expands Fiduciary Exposure by Permitting ESG Proxy Voting Theory to Go to Trial

Mayer Brown on

Case Name and Number: Spence v. American Airlines, Inc., et al., No. 4:23-cv-00552 - INTRODUCTION - On June 20, 2024, Judge Reed O’Connor in the Northern District of Texas (the “court”) denied a motion for summary...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

TIAA needs to litigate cross-selling lawsuit

A lawsuit against TIAA’s cross-selling a managed account service will proceed after their motion to dismiss was denied by a federal district court judge in New York....more

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