News & Analysis as of

Employee Retirement Income Security Act (ERISA) Employee Stock Ownership Plans

Snell & Wilmer

Cheers to 50 Years of ERISA: A Major Milestone in Employee Protection

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As the Employee Retirement Income Security Act (“ERISA”) celebrates its 50th anniversary, it offers us an opportunity to reflect on its transformative impact on employee benefits and retirement security. Signed into law on...more

Holland & Knight LLP

Arkansas Court Declines to Dismiss Challenge to ESOP Releveraging Transaction

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The U.S. District Court for the Western District of Arkansas issued its written decision in Shipp v. Central States Manufacturing, Inc. on July 5, 2024, declining to dismiss the case against Central States Manufacturing Inc....more

Kaufman & Canoles

ESOPs, Benefits & Compensation Q2 2024 Client Update

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On behalf of the ESOPs, Benefits & Compensation team, we hope your Summer is off to a great start. In the time of family vacations and out-of-office replies, the pace of employee benefits changes—both large and small—remains...more

Jackson Lewis P.C.

Second Circuit Weighs in Against ERISA Arbitration

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Recently, the Second Circuit became the latest circuit refusing to enforce individual arbitration of an ERISA class action, joining the Third, Seventh, and Tenth Circuits. The Ninth Circuit, by contrast, has held that class...more

Foley & Lardner LLP

Five Things on the Department of Labor’s Radar for Employee Benefit Plans

Foley & Lardner LLP on

All qualified retirement plans are subject to a myriad of requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The United States Department of Labor (DOL) is charged with enforcing the...more

Kaufman & Canoles

ESOPs & Employee Benefits Q1 2024 Client Update

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On behalf of the ESOPs & Employee Benefits team, we hope you’re enjoying the first days of Spring, when the longer days allow more time to ponder the ever-changing landscape of employee benefits compliance. Please find below...more

Freeman Law

Employee Stock Ownership Plans | A Brief Overview

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Since their establishment in 1974, Employee Stock Ownership Plans (“ESOPs”) have become a popular and effective mechanism for private companies (both C corporations and S corporations) to provide employees an opportunity to...more

Proskauer - Employee Benefits & Executive...

Putative ESOP Class Action Dismissed for Failure to Exhaust Administrative Remedies

The decision in Bolton v. Inland Fresh Seafood Corp. of America Inc., No. 22-cv-4602 (N.D. Ga. Dec. 5, 2023)should serve as a reminder to all ERISA practitioners that, if litigating in courts of the Eleventh Circuit,...more

ArentFox Schiff

Fiduciary Obligations in a Re-Leveraging Transaction Heads to Court: Shipp v. Central States Manufacturing, Inc., Case...

ArentFox Schiff on

On November 28, three participants in Central States Manufacturing, Inc.’s employee stock ownership plan (ESOP) filed a complaint on their own behalf and on behalf of other ESOP participants against the company, its board of...more

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

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As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

Proskauer - Employee Benefits & Executive...

District Court Enforces Arbitration Clause in ERISA Plan Document

A federal district court judge in the Eastern District of Kentucky has enforced an ESOP’s arbitration clause, sending P.L. Marketing Inc. employees’ breach of fiduciary duty claims on behalf of a putative class to individual...more

Faegre Drinker Biddle & Reath LLP

Thinking ESOPs: Fourth Circuit Narrows Equitable Relief Under ERISA

In Rose v. PSA Airlines, Inc., 80 F.4th 488 (4th Cir. 2023), the U.S. Court of Appeals for the Fourth Circuit held that ERISA § 502(a)(3), which permits a claim for “other appropriate equitable relief,” does not allow claims...more

Faegre Drinker Biddle & Reath LLP

When One Door Closes, Another Opens… Maybe. Fourth Circuit Holds That Surcharge Is Not Equitable Relief Available Under ERISA But...

In an ERISA case for wrongful denial of health insurance benefits, the U.S. Court of Appeals for the Fourth Circuit addressed when a plaintiff may recover monetary relief under §§ 502(a)(1)(B) and (a)(3). The Fourth Circuit...more

Jackson Lewis P.C.

Third Circuit Rejects Mandatory Arbitration Clause in ESOP

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The Third Circuit refused to enforce a mandatory arbitration clause with a class action waiver in an ESOP, finding that the class action waiver deprived participants of statutory rights. The ESOP plan added the clause at...more

Holland & Hart - Employers' Lawyers

10th Circuit Rejects ERISA Arbitration Provision

Courts have been mixed regarding the enforceability of arbitration provisions in Employee Retirement Income Security Act (ERISA) retirement plans since the U.S. 9th Circuit Court of Appeals’ 2019 decision in Dorman v. Charles...more

Robinson Bradshaw

Tenth Circuit Prohibits Class-Action Waivers in Benefit Plan Documents

Robinson Bradshaw on

It is no secret that many businesses minimize risk by requiring arbitration of disputes on an individual basis. The exposure created by a single claim pales next to that presented by a class claim, asserted under Rule 23, on...more

Levenfeld Pearlstein, LLC

How the Secure Act 2.0 Affects ESOPs, 401(k)s, and Other Retirement Plans

The Secure Act 2.0 of 2022, enacted in the closing days of 2022, makes a substantial number of changes to tax-qualified retirement plans, most of which are intended to increase plan coverage and retirement savings. Although...more

Snell & Wilmer

Tenth Circuit Allows ERISA Arbitration, So Long As There are No Limitations in Remedies

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On February 9, 2023, the U.S. Court of Appeals for the Tenth Circuit refused to enforce an arbitration clause contained in an employee stock ownership plan (“ESOP”) document. In a 41-page opinion, the Court held that the ESOP...more

Holland & Hart - The Benefits Dial

What Happens In A Small Town Stays In A Small Town … Until The Tenth Circuit Rejects ERISA Arbitration Provision

While case law regarding the enforceability of arbitration provisions in ERISA retirement plans has been mixed, since the Ninth Circuit’s 2019 decision in Dorman v. Charles Schwab Corp. enforcing a 401(k) plan’s arbitration...more

Morgan Lewis - ML Benefits

SECURE Act 2.0: Impact on ESOPs

The SECURE 2.0 Act of 2022 (SECURE Act 2.0) makes far-reaching changes to the US retirement plan system. Our initial SECURE Act 2.0 LawFlash provided a general overview of its significant provisions. This blog post—one in our...more

Seyfarth Shaw LLP

Courts Continue to Scrutinize Arbitration Clauses in ERISA Plans

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Seyfarth Synopsis: A recent district court decision highlights the continued uncertainties about what it means to include an arbitration clause in an ERISA plan. While courts generally agree that such clauses are, in theory,...more

Keating Muething & Klekamp PLL

What Employers Need to Know About SECURE 2.0

The Senate ushered in the New Year with a bang by passing SECURE 2.0 on December 22, 2022. SECURE 2.0 includes many updates to the sweeping changes brought about under 2019’s original SECURE Act legislation...more

Proskauer - Employee Benefits & Executive...

S.D.N.Y. Voids ERISA Plan’s Arbitration Provision

A district court in New York recently refused to enforce an arbitration provision in an ERISA fiduciary breach lawsuit challenging the valuation of an Employee Stock Ownership Plan (“ESOP”). The ruling in Lloyd v. Argent,...more

Holland & Knight LLP

Second Circuit Upholds Dismissal of ESOP Lawsuit for Lacking Article III Standing

Holland & Knight LLP on

In Plutzer v. Bankers Trust, the U.S. Court of Appeals for the Second Circuit affirmed dismissal by the U.S. District Court for the Southern District of New York de novo; and emphasized that a plaintiff must allege concrete,...more

Faegre Drinker Biddle & Reath LLP

Thinking ESOPs: Why Aren’t Courts Conducting the 'Context-Specific' Inquiry Into Complaints That the Supreme Court Requires?

Recently, several appellate-level court decisions have affirmed dismissals of ERISA fiduciary-breach claims involving 401(k) plans. These decisions followed the Supreme Court’s decision earlier this year in a 403(b) case, in...more

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