News & Analysis as of

Joint and Several Liability Pensions

Sun Capital Redux: Private Equity Fund Seeks Declaratory Judgment on Controlled Group Liability for Portfolio Company's Pension...

by Proskauer Rose LLP on

In light of the recent decisions by the U.S. Court of Appeals for the First Circuit and the U.S. District Court for the District of Massachusetts in Sun Capital, private investment funds, multiemployer pension funds and the...more

Sun Capital Court Finds that Common Industry Practices Exposed PE Funds to Pension Plan Liabilities

A group of related private equity (“PE”) funds were found liable for a bankrupt portfolio company’s pension plan debts in the latest and most worrisome decision in the long-running Sun Capital Partners III, LP v. New England...more

Casting a Wider Net: Court Finds Private Equity Funds Liable for ERISA Withdrawal Liability

On March 28, 2016, a district court in Massachusetts found two private equity funds (under the Sun Capital Partners, Inc. umbrella) jointly and severally liable for withdrawal liability imposed on one of its underlying...more

Private Equity Funds Liable for Portfolio Company's Pension Obligations

by McCarter & English, LLP on

A U.S. District Court issued a ruling on March 28 that affects pension liabilities for private equity funds and their portfolio companies. Taken further, the ruling potentially changes fundamental rules for tax-qualified...more

Private Equity Funds Held Liable for Pension Obligations of a Portfolio Company

by White & Case LLP on

District Court: Two Affiliated Funds Formed “Partnership-in-Fact” and Have Controlled Group Liability for Portfolio Company Pension Liabilities - In a closely watched case (the “Sun Capital” case), the U.S. District...more

Sun Capital Court Finds Co-Investing Funds Part of Controlled Group and Liable for Portfolio Company’s Pension Liabilities

by Proskauer Rose LLP on

District Court finds affiliated funds acted in de facto partnership which controlled portfolio company; Decision may be significant in making private equity acquisition structuring choices. As we previously reported, in...more

Sun Capital: Private Equity Funds Liable for Portfolio Company’s Withdrawal Liability

by Latham & Watkins LLP on

District Court finds affiliated funds acted in de facto partnership which controlled portfolio company; Decision may be significant in making private equity acquisition structuring choices. On March 28, 2016, a Federal...more

Litigation Alert: Private Equity Funds Liable for Withdrawal Liability Although Each Had Less Than 80% Ownership

by Reed Smith on

Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund - It’s Part 2 of one of the most important withdrawal liability cases in a decade… - In 2013, the First Circuit issued the...more

"Executive Compensation and Benefits Alert: Court Ruling Signals Potential ERISA Liability for PE Fund Sponsors"

On March 28, 2016, the U.S. District Court for the District of Massachusetts held that three private equity (PE) funds were jointly and severally liable for the multiemployer pension plan withdrawal liability of one of their...more

Long Arm of ERISA Tags Non-US Parent Company With Pension Liabilities of Its US Subsidiary

by White & Case LLP on

A non-United States entity seeking to acquire a United States entity should be aware that the acquisition may expose the non-US entity to any pension plan termination and withdrawal liabilities of the US target entity in...more

A Warning Shot for Private Equity Funds: First Circuit Court of Appeals Holds Fund Engaged in a "Trade or Business" for Purposes...

by BakerHostetler on

Under Title IV of the Employee Retirement Income Security Act (ERISA), withdrawal liability upon cessation of participation in a multiemployer pension plan and termination liability upon the involuntary or distressed...more

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