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Mealey's ERISA

  • February 21, 2025

    Imprudence Claim Survives Dismissal In Suit Over ESOP’s Cash-Equivalent Strategy

    PITTSBURGH — A Pennsylvania federal judge on Feb. 20 dismissed a prohibited transaction claim but ruled that an imprudence claim asserted under the Employee Retirement Income Security Act survives in a putative class action filed by former and current employee stock ownership plan (ESOP)participants who say that about 80% of the plan’s funds have been kept in cash equivalents — money market funds and short-term certificates of deposit — since at least 2009.

  • February 21, 2025

    2nd Circuit Upholds Pension Ruling For NBA Ref Terminated Over Vaccine Requirement

    NEW YORK — Issuing a Feb. 20 summary order in favor of a former NBA Services Corp. (NSC) referee who was terminated for not being vaccinated against COVID-19, a Second Circuit U.S. Court of Appeals panel affirmed that the termination meant he qualified for a pension payment of nearly $3 million even though he has a separate pending discrimination lawsuit over the termination.

  • February 21, 2025

    2nd Circuit Issues Mixed Ruling, Again Remands ERISA Deferred Compensation Row

    NEW YORK — Cross-appeals in a long-running Employee Retirement Income Security Act deferred compensation dispute resulted in a mixed ruling that a Second Circuit U.S. Court of Appeals panel issued as a summary order, remanding for further proceedings.

  • February 18, 2025

    At DOL’s Request, 5th Circuit Stays Appeals Concerning ERISA Fiduciary Rule

    NEW ORLEANS — Noting that the U.S. Department of Labor (DOL) motion to hold consolidated appeals in abeyance was unopposed, a Fifth Circuit U.S. Court of Appeals judge on Feb. 14 granted a 60-day stay in the challenges of July rulings that imposed a nationwide stay of the effective date of the DOL Retirement Security Rule that redefines and broadens who is an investment advice fiduciary under the Employee Retirement Income Security Act.

  • February 18, 2025

    Texas Federal Judge: DOL’s ESG Investing Rule Still Survives Under Loper Bright

    AMARILLO, Texas — A Texas federal judge on Feb. 14 again upheld a 2022 U.S. Department of Labor (DOL) investment rule concerning environmental, social and governance (ESG) factors, rejecting what he called a request by the plaintiff states, companies and individuals “to expand the scope of the Fifth Circuit's limited remand and interpret [Loper Bright Enters. v. Raimondo] to affect standards it does not affect.”

  • February 13, 2025

    6th Circuit Won’t Revisit 2-1 Revival Of ERISA Suit Challenging TDFs

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Feb. 12 briefly denied a petition for rehearing en banc that six amicus curiae entities supported in a combined brief; the 2-1 decision at issue revived an Employee Retirement Income Security Act suit over a retirement plan’s retention of the passively managed Northern Trust Focus Funds suite of target date funds (TDFs) and choice of share classes.

  • February 12, 2025

    Lab Asks Court To Reconsider Dismissal Of Some Of Its COVID Test Repayment Claims

    NEWARK, N.J. — In a lawsuit seeking reimbursement from health insurers for COVID-19 testing, a medical testing laboratory moved a New Jersey federal court for reconsideration of its order dismissing the lab’s claims based on retroactive assignments of rights by beneficiaries of plans governed by the Employee Retirement Income Security Act, distinguishing precedent the court cited and dismissing its breach of implied contract claims, arguing that it was for the jury to determine whether the insurer’s direct reimbursements early in the pandemic were sufficient to allege a course of conduct.

  • February 12, 2025

    DOL To 5th Circuit: Hold Appeals Concerning ERISA Fiduciary Rule In Abeyance

    NEW ORLEANS — Citing “the recent change in administration,” the U.S. Department of Labor (DOL) on Feb. 12 asked the Fifth Circuit U.S. Court of Appeals to hold in abeyance consolidated appeals challenging two July rulings that imposed a nationwide stay of the effective date of the DOL Retirement Security Rule that redefines and broadens who is an investment advice fiduciary under the Employee Retirement Income Security Act.

  • February 12, 2025

    6th Circuit Affirms Former Exec’s Losses In ‘Top Hat’ Severance Benefits Row

    CINCINNATI — Affirming that the executive severance plan at issue in the Employee Retirement Income Security Act suit “qualifies as a top-hat plan,” a Sixth Circuit U.S. Court of Appeals panel upheld discovery and judgment on the administrative record rulings against the appellant and found no error in the striking of his jury demand.

  • February 11, 2025

    Consent Order Worth More Than $20M Proposed In Suit Against Big TPA

    MADISON, Wis. — The third-party administrator (TPA) of hundreds of self-funded employee welfare benefit plans would “pay or cause to be paid at least $20,250,000,” plus civil penalties, under a consent order and judgment proposed to resolve a suit challenging adverse benefit determinations regarding hospital emergency services claims and urinary drug screening claims, the U.S. Department of Labor (DOL) told a Wisconsin federal court.

  • February 11, 2025

    9th Circuit Lets Ruling That Plan Doesn’t Have To Cover Residential Stay Stand

    SAN FRANCISCO — A self-funded health plan does not have to cover a nearly yearlong stay at a residential mental health provider under a ruling that a Ninth Circuit U.S. Court of Appeals panel upheld in an unpublished memorandum disposition; the Employee Retirement Income Security Act dispute centered on the use of what are known as “InterQual criteria.”

  • February 11, 2025

    1st Circuit Affirms Multiemployer Pension Fund Win In Withdrawal Liability Row

    BOSTON — In a two-page judgment, a First Circuit U.S. Court of Appeals panel affirmed a ruling for a multiemployer pension fund in a dispute concerning unpaid withdrawal liability, deeming “unpersuasive” the withdrawn employer’s contentions that it didn’t waive an exemption argument and that a demand letter constituted a violation of a bankruptcy stay.

  • February 10, 2025

    2nd Circuit Vacates Ruling Against Union In Benefits Row Involving Expired CBA

    NEW YORK — Saying in part that language incorporated by reference in an expired collective bargaining agreement (CBA) “can be reasonably understood as guaranteeing benefits beyond the contract’s expiration or as constituting deferred compensation,” a Second Circuit U.S. Court of Appeals panel vacated and remanded a ruling that a dispute over Xerox Corp.’s termination of certain retiree health benefits was not arbitrable.

  • February 07, 2025

    3rd Circuit Affirms Retiree Released Claims In ERISA Pension Row

    PHILADELPHIA — Agreeing with the trial court that the Employee Retirement Income Security Act claims that a retiree sought to revive were included in a release that she signed knowingly and voluntarily, a Third Circuit U.S. Court of Appeals panel issued a nonprecedential per curiam disposition on Feb. 6 affirming summary judgment against the retiree in a pension benefits dispute.

  • February 07, 2025

    HP Inc. Gets Amended ERISA Forfeiture Suit Tossed With Prejudice In Federal Court

    SAN JOSE, Calif. — One of the first companies to face an Employee Retirement Income Security Act lawsuit for allegedly not putting forfeited nonvested matching retirement contributions toward administrative expenses got the amended complaint dismissed with prejudice; the California federal judge said in part that “the same categorical rule implicit in Plaintiff’s initial Complaint pervades the revised pleading” and “flies in the face of decades of ERISA practice.”

  • February 07, 2025

    10th Circuit Affirms Ruling For Worker In ERISA Severance Dispute

    DENVER — In an unpublished order and judgment noting the “stark” change in responsibilities that occurred after a change of control, a 10th Circuit U.S. Court of Appeals panel affirmed that a former employee was due severance benefits in an Employee Retirement Income Security Act case that involved disputes over a “good reason” clause and the correct standard of review.

  • February 07, 2025

    LTD Benefits Termination Was Not Arbitrary, Capricious, Magistrate Judge Says

    JACKSONVILLE, Fla. — A disability insurer’s termination of a claimant’s long-term disability (LTD) benefits was de novo wrong; however, the termination was not arbitrary and capricious because the disability insurer had reasonable grounds to support its termination of benefits decision, a Florida federal magistrate judge said in recommending that the disability insurer’s motion for summary judgment be granted.

  • February 06, 2025

    Indiana Federal Judge Refuses To Reconsider Evidence Ruling In Disability Dispute

    FORT WAYNE, Ind. — An Indiana federal judge on Feb. 5 denied a disability insurer’s motion for reconsideration, refusing to reconsider a decision granting a disability claimant’s motion to exclude evidence collected after the date on which a long-term disability (LTD) benefits claim was deemed exhausted based on the insurer’s failure to decide the claimant’s appeal within 45 days as required by regulations set forth by the U.S. Department of Labor.

  • February 06, 2025

    Disability Plan Administrator Failed To Conduct Full, Fair Review, Panel Says

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals reversed a district court’s ruling in favor of a disability plan and said remand to the plan administrator is necessary because the plan administrator failed to consider evidence submitted by the disability claimant as part of his administrative appeal following the termination of his long-term disability (LTD) benefits.

  • February 06, 2025

    Amici Support Appellees In 11th Circuit ERISA Pension Assumptions Row

    ATLANTA — Agreeing with appellees, amici curiae have filed two briefs supporting affirmation of an Employee Retirement Income Security Act ruling that the U.S. Department of Labor (DOL) as amicus in December urged the 11th Circuit U.S. Court of Appeals to overturn; the appeal seeks revival of a putative class action challenging assumptions used to calculate annuities for married pension plan participants.

  • February 06, 2025

    Federal Judge Says Denial Of Disability Benefits Was Not Arbitrary, Capricious

    NEW YORK — A disability insurer’s denial of a long-term disability (LTD) benefits claim was not arbitrary and capricious because the insurer’s denial was supported by substantial evidence and because the insurer provided the disability claimant the opportunity to respond to all evidence collected by the insurer’s medical reviewers, a New York federal judge said in granting judgment in favor of the insurer.

  • February 06, 2025

    Claimant Met Burden Of Showing She Is Disabled From Own Occupation

    SEATTLE — A Washington federal judge granted a disability claimant’s motion for judgment on the administrative record after determining that the claimant met her burden of proving by a preponderance of the evidence that she was disabled from performing the duties of her own occupation because her disability prevented her from sitting for more than four hours at a time.

  • February 04, 2025

    $5.9M Class Deal To Resolve Suit Against ESOP Trustee Wins Initial Approval

    CHICAGO — An Employee Retirement Income Security Act class action asserting claims against the former trustee of an employee stock ownership plan (ESOP) would be resolved under a $5.9 million class settlement that an Illinois federal judge has preliminarily approved.

  • February 04, 2025

    Former Independent Trustee Loses Renewed Dismissal Bid In ESOP Dispute On Remand

    GREEN BAY, Wis. — On remand after partial revival of an Employee Retirement Income Security Act suit concerning an employee stock ownership plan (ESOP) and alleged price inflation, a Wisconsin federal judge denied a former independent trustee’s motion to dismiss the two claims against it, which are based on the trustee’s approval of what turned out to be the penultimate stock evaluation before an ESOP stock purchase.

  • February 04, 2025

    Judge Certifies Classes, Denies Summary Judgment In ERISA Imprudence Row

    GALVESTON, Texas — Briefly adopting memorandum and recommendations issued in 2023, a Texas federal judge on Feb. 3 overruled all objections, denying motions for summary judgment and partial summary judgment and granting certification of two classes in an Employee Retirement Income Security Act dispute over alleged retirement plan mismanagement.