Mealey's ERISA
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February 07, 2024
Disability Benefits Suit Settled; Parties File Stipulation Of Dismissal
DALLAS — Following a Texas federal judge’s ruling that a disability claimant’s long-term disability (LTD) benefits must be reinstated, the parties reached a settlement of the LTD benefits dispute and filed a joint stipulation of dismissal with prejudice.
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February 06, 2024
Fiduciaries Want To Appeal 9th Circuit Ruling In ERISA Prohibited Transaction Row
WASHINGTON, D.C. — Retirement plan fiduciaries were given a March 7 deadline to seek U.S. Supreme Court review of a ruling concerning the Employee Retirement Income Security Act’s prohibited transaction provision after arguing that the ruling involves a circuit split, is not consistent with Lockheed Corp. v. Spink and “threatens serious practical consequences for plan administration.”
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February 06, 2024
Disability Insurer Breached Fiduciary Duty In Terminating Benefits, Claimant Says
DENVER — A disability insurer breached its fiduciary duty in terminating a claim for long-term disability (LTD) benefits because the insurer mischaracterized the claimant’s medical condition and failed to follow the plan’s guidelines and procedures in handling the claim, a disability claimant alleges in a complaint filed Feb. 5 in Colorado federal court.
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February 06, 2024
Disability Insurer Improperly Terminated Benefits, Claimant Alleges In Complaint
DENVER — A disability claimant alleges in a Feb. 5 complaint filed in Colorado federal court that a disability insurer acted improperly, arbitrarily and capriciously in terminating her long-term disability (LTD) benefits based on a finding that she was not disabled from performing the duties of any occupation.
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February 06, 2024
$3.8M Settlement For Class Of More Than 30,000 Gets Initial OK In ERISA Row
GREENSBORO, N.C. — A North Carolina federal judge on Feb. 5 granted a motion by former participants in a 403(b) retirement plan for preliminary approval of a $3.8 million class settlement that would resolve allegations of imprudence regarding record-keeping fees and share classes.
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February 06, 2024
ERISA Fiduciary Breach Claims Asserted Over J&J Drug Plan That Used PBM
CAMDEN, N.J. — Calling herself a “whistleblower” and asserting fiduciary breach claims under the Employee Retirement Income Security Act, an employee on Feb. 5 filed a putative class case against Johnson and Johnson (J&J) and related entities and individuals over alleged “mismanagement of prescription-drug benefits” involving a pharmacy benefits manager (PBM).
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February 05, 2024
$7.5M Would End ERISA Row Over Proprietary Trusts Under Global Proposal
FLORENCE, S.C. — A South Carolina federal court that rejected a $4.5 million class settlement with one defendant has now been asked to approve a $7.5 million global deal, with all parties signing on to a Feb. 2 motion for preliminary settlement approval in the suit over a retirement plan’s use of proprietary collective investment trusts (CITs).
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February 05, 2024
Parties Dispute Dismissal Bid In 1 Of 5 ERISA Suits Over Forfeiture Allocation
OAKLAND, Calif. — Parties in one of five similar Employee Retirement Income Security Act suits in California federal courts challenging “reallocation of the forfeitures in the [retirement plan’s] trust fund to reduce [the company’s] contributions” are disputing standing and whether the complaint sufficiently states the claims, with the defendants reiterating their arguments in a reply brief supporting their dismissal motion.
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February 02, 2024
DOL Files ERISA Suit Against TPA Over Handling Of MinnesotaCare Tax
MINNEAPOLIS — The U.S. Department of Labor (DOL) has sued a third-party administrator (TPA) in Minnesota federal court over what it alleges was at least $66.8 million the TPA collected from self-funded health benefit plans without authorization between 2016 and 2020 for a Minnesota provider tax.
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February 02, 2024
11th Circuit Denies Dermatologist’s Bid To Void 8 Years Of ERISA Rulings
ATLANTA — Two 11th Circuit U.S. Court of Appeals judges have denied a request addressed to U.S. Supreme Court Justice Clarence Thomas but filed in their court in which a dermatologist sought relief including the voiding of nearly 20 rulings the 11th Circuit issued in her Employee Retirement Income Security Act cases over the last eight years.
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February 02, 2024
$2M Deal Gets Preliminary OK In ERISA Case Against Georgia Health System
COLUMBUS, Ga. — A Georgia federal judge on Feb. 1 granted preliminary approval to a deal in which a $2 million payment would settle a class action involving the investment decisions and administrative costs of a terminated retirement plan.
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February 02, 2024
Appellee To 3rd Circuit: Affirm That Trustees, Others Are Liable Under ERISA
PHILADELPHIA — Responding to multiple arguments, an individual claiming benefits under a pension trust established in 1947 urged the Third Circuit U.S. Court of Appeals to deny challenges to decisions in the case where trustees and grandchildren of the trust settlor were ruled liable under the Employee Retirement Income Security Act for millions in underfunding.
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February 01, 2024
$9.75M Settlement With Monitoring Boost Gets Final OK In ERISA Imprudence Row
BOSTON — A Massachusetts federal judge has granted final approval of a class settlement including a $9.75 million payment and a boost to monitoring processes for investments and service providers in an Employee Retirement Income Security Act case over fiduciaries’ allegedly imprudent fund choices.
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February 01, 2024
11th Circuit Sets Argument In ERISA Fees, Funds Row Involving Burden Shifting
ATLANTA — The 11th Circuit U.S. Court of Appeals has set oral argument for March 28 in an appeal that seeks to revive a class action over retirement plan fees and funds and that has drawn amicus input from the U.S. secretary of Labor and the Chamber of Commerce of the United States of America on the issue of burden shifting.
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February 01, 2024
LTD Claim Remanded To Plan Administrator To Complete Full, Fair Review
CEDAR RAPIDS, Iowa — An Iowa federal judge remanded a disability claimant’s long-term disability (LTD) claim to the disability plan administrator after determining that the claimant was deprived of a full and fair review because the claimant was not afforded the opportunity to respond to new information used by the disability insurer in denying the claimant’s appeal.
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January 30, 2024
Business Center, Other Amici Urge 5th Circuit To Vacate DOL’s ESG Investing Rule
NEW ORLEANS — The National Federation of Independent Business (NFIB) Small Business Legal Center Inc. is among entities and individuals that have filed amicus curiae briefs urging the Fifth Circuit U.S. Court of Appeals to reverse a Texas federal court and vacate the U.S. Department of Labor’s 2022 investment rule concerning environmental, social and governance (ESG) factors.
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January 30, 2024
Judge: Twins’ Care Claims Survive ERISA Preemption, But Exhaustion Issues Remain
MIAMI — The Employee Retirement Income Security Act does not preempt contract claims brought by a medical provider seeking compensation for care provided to premature twins, but any future complaint must adequately allege exhaustion of administrative remedies, a federal judge in Florida said while granting a motion to dismiss in part.
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January 26, 2024
Appellees Urge 2nd Circuit To Affirm Ruling In ERISA Mortgage-Backed Securities Row
NEW YORK — Fighting arguments that a pension fund’s investment in mortgage-backed securities (MBS) made the mortgages plan assets under the Employee Retirement Income Security Act, mortgage servicers told the Second Circuit Court of Appeals that “straightforward application of the governing regulation defeats” those claims.
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January 25, 2024
Denial Of LTD Benefits Was Not Arbitrary, Capricious, Federal Judge Determines
MADISON, Wis. — A disability insurer did not act arbitrarily and capriciously in denying a claim for long-term disability (LTD) benefits because the evidence in the record supports the insurer’s conclusion that the claimant failed to provide objective medical evidence in support of her LTD claim, a Wisconsin federal judge said.
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January 24, 2024
Stay Pending Appeal Best Choice In ACA Discrimination Case, Judge Says
TACOMA, Wash. — Staying a case while an insurer appeals a ruling finding that it violated Patient Protection and Affordable Care Act (ACA) Section 1557’s prohibition on discrimination by imposing a blanket exclusion on gender-affirming care ensures that it does not have to take actions that would be difficult to undo and leaves the plaintiffs with the status quo, a federal judge in Washington said in granting the relief.
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January 24, 2024
DOL Updates Process For Administrative Exemptions To ERISA Prohibited Transactions
WASHINGTON, D.C. — The U.S. Department of Labor (DOL) on Jan. 23 released a final rule amending “its existing procedure governing the filing and processing of applications for administrative exemptions” from the Employee Retirement Income Security Act’s prohibition on transactions between “parties in interest.”
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January 24, 2024
2nd Circuit Upholds Ruling Against Ex-Union Member Who Lost Benefits
NEW YORK — In a summary order, a Second Circuit U.S. Court of Appeals panel upheld dismissal of Employee Retirement Income Security Act claims and a Labor-Management Reporting and Disclosure Act (LMRDA) claim that a retiree filed after being expelled from a union and losing pension and health benefits.
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January 24, 2024
Parties Stipulate To Dismissal Of ERISA Suit Over Loans That TIAA Serviced
NEW YORK — The parties in an Employee Retirement Income Security Act suit where certification of a class of thousands of retirement plans was overturned filed a joint Jan. 23 stipulation to dismissal with prejudice of all claims in the suit over collateralized loans serviced by Teachers Insurance and Annuity Association of America (TIAA).
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January 24, 2024
Certiorari, Summary Reversal Sought In ERISA Case Over Heart Transplant Denial
WASHINGTON, D.C. — Telling the U.S. Supreme Court that “every circuit to address the question presented was in agreement” before the Fourth Circuit U.S. Court of Appeals ruling at issue, a petitioner requests certiorari and also suggests summary reversal in an Employee Retirement Income Security Act suit concerning when monetary relief is equitable.
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January 24, 2024
Disability Insurer Did Not Act Arbitrarily, Capriciously In Offsetting Benefits
PORTLAND, Maine — A federal judge in Maine granted a disability insurer’s motion for judgment on the administrative record after determining that the insurer did not act arbitrarily or capriciously or abuse its discretion by offsetting a claimant’s benefits to recover an overpayment because the plan terms clearly permitted the insurer to offset the benefits.