Mealey's ERISA : Mealey's : Legal News & Analysis

Mealey's ERISA

January 08, 2025
Disability Insurer’s Termination Of Benefits Was Not Arbitrary, Capricious

NEW YORK — The Second Circuit U.S. Court of Appeals affirmed a district court’s judgment in favor of a disability insurer, agreeing with the lower court’s conclusion that the insurer’s termination of a claimant’s long-term disability (LTD) benefits was not arbitrary and capricious because the termination was based on substantial evidence.
January 07, 2025
$6.9M Settlement Proposed In ERISA Imprudence Case Over Fees And Funds

CHICAGO — Seeking preliminary approval of a $6.9 million class settlement in an Employee Retirement Income Security Act suit involving record-keeping fees and proprietary target date funds (TDFs), retirement plan participants on Jan. 6 told an Illinois federal court that the gross amount is “approximately 12% to 38% of damages” estimated by their expert.
January 07, 2025
Protective Order Violations Alleged In ERISA, RICO Suit Over Repricing Method

OAKLAND, Calif. — After the defendants alleged violation of a protective order in the Employee Retirement Income Security Act and Racketeer Influenced and Corrupt Organizations Act (RICO) suit over alleged underpayment for out-of-network behavioral health treatment claims, saying in part that a government regulator not involved sent a confidential document from it in communications about a separate matter, the plaintiffs requested more time to respond and a California federal judge issued a text-only order.
January 07, 2025
11th Circuit ERISA Ruling Rejecting Burden-Shifting Is Focus Of Certiorari Bid

WASHINGTON, D.C. — The Home Depot Inc. and related respondents have waived their right to respond to a certiorari petition in which 401(k) plan participants ask the U.S. Supreme Court to weigh in on “whether, consistent with trust law, burden-shifting applies to the element of causation under” part of the Employee Retirement Income Security Act.
January 07, 2025
Attorney Fee, Timeliness Issues Highlighted In U.S. Supreme Court Certiorari Bid

WASHINGTON, D.C. — Seeking the high court’s review of a ruling that affirmed judgment for multiemployer funds, a contractor and surety assert that the latest of the nine Miller Act decisions that the U.S. Supreme Court issued was handed down in 1978, saying, “The time is ripe for this Court to decide another Miller Act case, and this should be that case.”
January 03, 2025
Respondents, Amici Urge High Court To Affirm 2nd Circuit ERISA Ruling

WASHINGTON, D.C. — Three Jan. 3 amicus curiae briefs have been filed in the U.S. Supreme Court supporting the respondents on the question of what is necessary to state an Employee Retirement Income Security Act claim for a prohibited transaction between a plan and a party in interest.
January 03, 2025
Standing Is Among Issues Raised In Motion To Dismiss ERISA Suit Over Surcharges

CHARLOTTE, N.C. — Arguing in part that the plaintiffs lack standing, a company sued over surcharges imposed on participants in its self-funded health plan for tobacco use and for failing to get vaccinated against COVID-19 has moved in North Carolina federal court for dismissal.
January 02, 2025
$2.45M Class Settlement In ERISA Annuity Calculation Case Wins Final Approval

MILWAUKEE — A class of about 500 individuals whose joint survivor annuity (JSA) benefits were calculated using a 1971 mortality table and 6% interest rate will receive increased benefits under a $2.45 million Employee Retirement Income Security Act settlement that a Wisconsin federal judge granted final approval.
January 02, 2025
ERISA Preemption Argued In Suit Over Enforcement Of Part Of Minnesota PBM Law

MINNEAPOLIS — The ERISA Industry Committee (ERIC) and others have filed a suit in Minnesota federal court to stop enforcement of a state law regulating pharmacy benefit managers (PBMs) “extraterritorially” and against prescription-drug plans that are subject to the Employee Retirement Income Security Act and offered by self-insured employers or multiemployer union trusts.
January 02, 2025
Pension Risk Transfer To Prudential Is Focus Of ERISA Lawsuit

NEW YORK — The wave of Employee Retirement Income Security Act suits challenging pension risk transfers (PRTs) has taken a turn with the filing of a complaint in New York federal court that focuses on transfers to Prudential Insurance Company of America (PICA) and RGA Reinsurance Company (RGA).
December 31, 2024
Jury Demand Is Struck In ERISA Case Over Alleged Imprudence, Cross-Selling

NEWARK, N.J. — Saying that under Pane v. RCA Corp., the “causes of action do not establish a right to a jury trial because they are claims of equity jurisdiction,” a New Jersey federal magistrate judge struck the jury demand in an Employee Retirement Income Security Act suit over a retirement plan’s fees and funds and service providers’ purported use of participants’ confidential data in cross-selling.
December 30, 2024
Chamber, Others Want To Support Rehearing Of 6th Circuit ERISA Case

CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Dec. 30 ordered a response to a petition for rehearing en banc concerning a 2-1 decision reviving a 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; six entities are seeking permission to file a combined amicus brief supporting the petition.
December 30, 2024
Dismissal Stipulated In Substance Use Treatment Case Where Class Bid Failed

SAN JOSE, Calif. — Dismissal with prejudice has been stipulated in an Employee Retirement Income Security Act and Racketeer Influenced and Corrupt Organizations Act (RICO) suit alleging underpayment for out-of-network behavioral health services where a California federal judge denied class certification.
December 26, 2024
DOL Wants In On 6th Circuit Argument In ERISA Suit Against Health Plan TPA

CINCINNATI — The U.S. Department of Labor (DOL) is seeking permission to participate as amicus curiae in Feb. 6 oral argument before a Sixth Circuit U.S. Court of Appeals panel supporting revival of an Employee Retirement Income Security Act suit against the third-party administrator (TPA) of a self-funded health benefits plan.
December 23, 2024
Settlement Of Just Over $1.4M Proposed In Suit Over Insurer’s Denials

UTICA, N.Y. — A New York federal court has been asked to preliminarily approve a $1,415,000 settlement in a class action over allegations that United Behavioral Health violated the Employee Retirement Income Security Act by issuing blanket denials for residential treatments for mental health and chemical dependency claims when it considered even a single aspect of the facility’s treatment experimental.
December 23, 2024
Judge Finds For Plaintiffs On 3 Of 5 Claims In ERISA Benefits Suit Over Spinoff

PHILADELPHIA — After conducting a bench trial, a Pennsylvania federal judge found the defendants liable on three of five counts in a class action over corporate restructuring that affected retirement benefits, then appointed a special master over a variety of opposition and alternate suggestions from the parties.
December 23, 2024
5th Circuit Appeal Is Filed Over ERISA Dismissal Based On Promise Not To Sue

NEW ORLEANS — A former retirement plan participant has filed a Fifth Circuit U.S. Court of Appeals challenge to a ruling that he lacks standing to bring a putative class action because he signed a promise not to sue that applies to his Employee Retirement Income Security Act claims.
December 20, 2024
Adequacy, Typicality Issues Doom Class Certification Bid In ERISA Fees, Funds Case

LOS ANGELES — Saying in part that “neither Plaintiff has established even a de minimis familiarity with the facts of the case,” a California federal judge denied a motion for class certification in an Employee Retirement Income Security Act suit over a 403(b) retirement plan’s fees and funds.
December 20, 2024
Agreeing With Hutchins, Judge Dismisses ERISA Forfeiture Suit With Leave To Amend

NEWARK, N.J. — Repeatedly citing Hutchins v. HP Inc. and noting that the parties “seem to agree” that the retirement plan terms permitted the challenged allocation, a New Jersey federal judge on Dec. 19 dismissed a lawsuit over use of forfeited nonvested retirement plan contributions with leave to amend within 30 days.
December 19, 2024
11th Circuit Upholds Ruling Against Starbucks In COBRA Notice Case Arbitration Bid

ATLANTA — Upholding a ruling in a dispute over allegedly deficient Consolidated Omnibus Budget Reconciliation Act (COBRA) notice, an 11th Circuit U.S. Court of Appeals panel ruled in part that the spouse of a former Starbucks worker “was not a party to the arbitration agreement” and therefore “cannot be compelled to arbitrate absent another principle of law or equity.”
December 19, 2024
Class Counsel Get A 3rd Of $9M Global Deal In ERISA Proprietary Funds Suit

CINCINNATI — An Ohio federal magistrate judge on Dec. 18 granted final approval to a global $9 million settlement of an Employee Retirement Income Security Act class action over proprietary funds, from which she authorized paying the requested amounts of $3 million for attorney fees and $30,000 for service awards.
December 19, 2024
3rd Circuit Appeal Seeking Revival Of ERISA Imprudence Case Is Dismissed

PHILADELPHIA — Without substantive explanation, a Third Circuit U.S. Court of Appeals case challenging summary judgment for Evonik Corp. and related entities in an Employee Retirement Income Security Act class action has been dismissed with prejudice pursuant to a joint stipulation.
December 18, 2024
$19M Class Settlement In Lawsuit Over ESOP Wins Final Approval

TAMPA, Fla. — Upon receiving a joint notice of nonobjection, a Florida federal judge on Dec. 17 granted final approval to a $19 million class settlement that the plaintiffs said will “provide[] an average recovery of more than $100,000 per class member on a gross basis, topping the chart of recent ESOP [employee stock ownership plan] settlements by a substantial margin.”
December 18, 2024
Parties: Full Deal Is Back On Track In ERISA Case Over Alleged Cost-Shifting

ASHEVILLE, N.C. — A little over a week after reporting the partial breakdown of a global settlement, parties in a class action concerning an alleged cost-shifting scheme regarding health plan administrative fees on Dec. 17 informed a North Carolina federal court that continued negotiations resulted in an “agreement on material terms to resolve all claims.”
December 17, 2024
Final Approval Recommended For $19M Class Deal In Lawsuit Over ESOP

TAMPA, Fla. — A Florida federal magistrate judge has recommended awarding the requested attorney fees and final approval of a $19 million class settlement that the plaintiffs say would “provide[] an average recovery of more than $100,000 per class member on a gross basis, topping the chart of recent ESOP [employee stock ownership plan] settlements by a substantial margin.”