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Benefits
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June 18, 2024
DuPont, Corteva Must Face Pension Benefits Class Action
Chemical companies DuPont and Corteva can't escape a class action claiming they illegally stripped retirement benefits from hundreds of workers following a merger and subsequent spinoff, a Pennsylvania federal judge ruled, finding factual disputes that need to be sorted out at trial.
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June 18, 2024
Hospital Board Says Feds Underpaid Claims By $17M
A Navajo Nation hospital board is suing the federal government, alleging the U.S. Department of Health and Human Services underpaid its fiscal year 2016 funding request for contract support costs by $17.4 million without any legal justification.
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June 18, 2024
Kohler Inks $2.45M Deal To Wrap Up Mortality Table Suit
Kohler struck a $2.45 million deal that aims to beef up pension payouts for about 500 married retirees to end a proposed class action claiming the manufacturing company shorted couples on pension benefits through the use of outdated data, according to a Wisconsin federal court filing.
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June 18, 2024
Milliman Wins 401(k) Mismanagement Suit After Trial
Consulting company Milliman Inc. prevailed over a class action suit alleging the company violated federal benefits law by keeping poorly performing investments tied to a financial subsidiary in its employee 401(k) plan, according to a California federal judge's order entered after a 10-day bench trial.
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June 18, 2024
HP Escapes 'Novel' 401(k) Suit Over Use Of Forfeited Funds
A California federal judge threw out a proposed class action that accused HP of unlawfully using former workers' forfeited 401(k) funds to satisfy its own contributions, saying nothing in federal benefits law required the company to use the funds to cover plan expenses.
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June 18, 2024
BDO's $2.25M Deal Ending 401(k) Suit Gets Final OK
An Illinois federal judge on Monday gave his final sign-off to a $2.25 million settlement accounting firm BDO agreed to pay to resolve a suit alleging the company failed to verify that retirement plan funds in an employee 401(k) were evaluated properly.
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June 18, 2024
Va. City Can't Ax Atty's Wrongful Firing Suit Over FMLA Fraud
A federal judge declined to toss an attorney's suit claiming the Virginia city he worked for illegally fired him and accused him of doctoring a medical form he needed to care for his sick mother, saying he showed the city may have stepped on his medical leave rights.
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June 18, 2024
Ex-USC Linebacker Cops To Pandemic Unemployment Fraud
A former linebacker for the University of Southern California football team pled guilty to fraudulently seeking over $1 million in pandemic-era unemployment benefits.
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June 17, 2024
Teamsters Plan Says Health Network Has Monopoly In Conn.
A Teamsters healthcare benefits plan and a Connecticut public transit provider have sued the healthcare network Hartford Healthcare Corp., accusing it of having a monopoly over healthcare in a half-dozen regions of the state.
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June 17, 2024
Accused NBA Fraud Leader May Testify At Doctor's Trial
A former NBA player who was sentenced to 10 years in prison for allegedly spearheading a scheme to defraud the league's healthcare plan is likely to be called to testify at the upcoming trial of a co-defendant, a Manhattan federal judge said Monday.
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June 17, 2024
DOL Says Insurers Can't Block ERISA Retirement Advice Regs
The U.S. Department of Labor urged a Texas federal court to reject a group of insurers' bid to halt the implementation of recently finalized regulations expanding which types of retirement investment advice fall under the purview of federal benefits law, arguing the challengers' request wasn't justified.
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June 17, 2024
Pharmacy Groups Urge High Court To Hear Okla. PBM Case
Pharmacy industry groups asked the U.S. Supreme Court to reverse a Tenth Circuit decision that overturned portions of an Oklahoma law regulating pharmacy benefit managers, saying these intermediaries have driven up costs for patients while raising their own bottom lines, and states should be allowed to keep them in check.
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June 17, 2024
Catching Up With Delaware's Chancery Court
Proposed amendments to Delaware's General Corporation Law that were prompted by several recent Chancery Court rulings sailed through the state Senate last week despite loud opposition from corporate law professors and other Chancery Court watchers, and Tesla shareholders filed two new suits against CEO Elon Musk.
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June 17, 2024
Justices To Hear Nvidia Case On Securities Pleading Standard
The U.S. Supreme Court on Monday agreed to hear an appeal of a Ninth Circuit ruling that revived investors' claims over chipmaker Nvidia's crypto mining sales, giving the high court a chance to weigh in on the pleading requirements needed to sustain a shareholder class action.
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June 14, 2024
Potato Co.'s Software Rollout Fried Its Revenue, Suit Says
Potato product manufacturer Lamb Weston has been hit with a proposed shareholder class action in Idaho federal court alleging that it concealed from investors information about the botched implementation of software that had been intended to improve the efficiency of the company's operations but ended up costing the company millions in lost sales.
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June 14, 2024
Red States Look To Block ACA Trans Discrimination Rule
A group of 15 conservative states urged a Mississippi federal court to halt recently finalized regulations clarifying gender identity-based discrimination under the Affordable Care Act from taking effect, saying the new rule strips the states of their right to oversee medical ethics.
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June 14, 2024
Providers' $12M Suit Against Cigna, Multiplan Trimmed
A California federal judge trimmed a suit against Cigna and Multiplan alleging the companies lowballed reimbursement to a group of substance use disorder treatment providers seeking more than $12 million under health plans they administered, keeping a federal benefits law claim intact but dropping several state law claims.
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June 14, 2024
NJ Chief Justice Depo 'Redundant' In Pension Fight, Court Told
The New Jersey judiciary urged the state court to deny a bid to depose Chief Justice Stuart Rabner in a suit brought by a former Superior Court judge over the denial of her disability pension application, arguing she can't meet the heightened burden required to depose a high-ranking official and that the chief justice's testimony is privileged.
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June 14, 2024
Former IT Worker Wants Outright Win In FMLA Suit
A former information technology worker asked a Florida federal court Friday to reconsider a win it denied him in his lawsuit alleging he was fired after he took medical leave to treat anxiety, arguing the court should have found his company acted illegally.
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June 14, 2024
Pfizer Worker's Ex-Wife Can't Raid 401(k) To Collect Damages
The ex-wife of a former Pfizer employee can't use her ex-husband's 401(k) account to collect damages awarded in a defamation suit against him, a Pennsylvania federal judge ruled, saying federal benefits law prevents her from seizing his retirement contributions.
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June 14, 2024
4 Big ERISA Decisions From The 1st Half Of 2024
A California federal court allowed a novel type of 401(k) mismanagement suit to advance to discovery, the Ninth Circuit elaborated on the pleading standard for mental health parity claims, and workers beat back an attempt to force their federal benefits suit into arbitration at the Second Circuit. Here, attorneys discuss four consequential ERISA decisions in 2024's first half.
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June 13, 2024
Prudential Investors Get Final OK On $35M Settlement
A New Jersey federal judge on Thursday granted final approval to a $35 million class action settlement between Prudential Financial Inc. and shareholders who alleged the company hid the risks associated with the purchase of thousands of life insurance policies.
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June 13, 2024
New Evidence Triggers Amended Misclassification Complaint
Growers accusing a chicken farm of misclassifying them as independent contractors can amend their suit, a South Carolina federal judge ruled Thursday, agreeing that new evidence they obtained could expand the suit's reach.
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June 13, 2024
Tesla Shareholders Approve Musk's Compensation Package
Tesla's shareholders voted to approve a multibillion-dollar compensation plan for CEO Elon Musk, the company's top lawyer announced Thursday during a meeting in which investors also approved moving the company's incorporation from Delaware to Texas.
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June 13, 2024
Retirement Sponsor Strikes Deal To End 401(k) Fee Suit
A professional employer organization that offered a $1.5 billion 401(k) plan to credit unions reached a deal to end former plan participants' proposed class action accusing it of saddling them with lofty fees, a Thursday filing in Wisconsin federal court said.
Expert Analysis
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Series
Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Opinion
Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Okla. Workers' Comp Case Could Mean Huge Shift In Claims
An Oklahoma appeals court's recent opinion in Prewitt v. Quiktrip Corp. may expand the scope of continuing medical maintenance orders in workers' compensation cases to unprecedented levels — with potentially major consequences for employers and insurers, says Steven Hanna at Gilson Daub.
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How To Protect Atty-Client Privilege While Using Generative AI
When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
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How New Lawyers Can Leverage Feedback For Growth
Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.
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Corporate Compliance Lessons From FirstEnergy Scandal
Fallout from a massive bribery scheme involving Ohio electric utility FirstEnergy and state officeholders — including the recent sentencing of two defendants — has critical corporate governance takeaways for companies and individuals seeking to influence government policymaking, say attorneys at Wilson Sonsini.
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Asset Manager Considerations For Soliciting Calif. Pensions
With California public pension and retirement plans representing close to $1 trillion in assets, managers must understand the lobbying laws that may be applicable to soliciting investments from the state's plans, say Chelsea Childs and Catherine Skulan at Ropes & Gray.
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Twitter Legal Fees Suit Offers Crash Course In Billing Ethics
X Corp.'s suit alleging that Wachtell grossly inflated its fees in the final days of Elon Musk’s Twitter acquisition provides a case study in how firms should protect their reputations by hewing to ethical billing practices and the high standards for professional conduct that govern attorney-client relationships, says Lourdes Fuentes at Karta Legal.
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Why It's Time To Regulate Plan Data As An Asset
With cyberattacks on the rise and the availability of artificial intelligence technology to the public, now is the time for the U.S. Department of Labor to regulate plan data as a plan asset to help protect participants from cybertheft and misuse, say attorneys at Michael Best.
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ABA's Money-Laundering Resolution Is A Balancing Act
While the American Bar Association’s recently passed resolution recognizes a lawyer's duty to discontinue representation that could facilitate money laundering and other fraudulent activity, it preserves, at least for now, the delicate balance of judicial, state-based regulation of the legal profession and the sanctity of the attorney-client relationship, say attorneys at Ballard Spahr.
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Law Firm Professional Development Steps To Thrive In AI Era
As generative artificial intelligence tools rapidly evolve, professional development leaders are instrumental in preparing law firms for the paradigm shifts ahead, and should consider three strategies to help empower legal talent with the skills required to succeed in an increasingly complex technological landscape, say Steve Gluckman and Anusia Gillespie at SkillBurst Interactive.
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Opinion
9th Circ.'s Latest UBH Ruling Ignores Case's Core Issue
The Ninth Circuit’s recent decision to vacate its earlier opinion in Wit v. United Behavioral Health frustratingly disregards the case’s key issue of benefits coverage for mental health treatment, and illogically elevates an insurer's discretionary authority over the medically necessary needs of patients, says Mark DeBofsky at DeBofsky Law.
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The Basics Of Being A Knowledge Management Attorney
Excerpt from Practical Guidance
Michael Lehet at Ogletree Deakins discusses the role of knowledge management attorneys at law firms, the common tasks they perform and practical tips for lawyers who may be considering becoming one.
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$735M Tesla Settlement Drives Home Lessons For Boards
As one of the largest settlements of its kind, the recent $735 million deal between Tesla and 11 nonemployee directors highlights the increased scrutiny placed on compensation practices and director independence, and provides further caution to members of boards and their compensation committees, say attorneys at Cleary.
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To Hire And Keep Top Talent, Think Beyond Compensation
Firms seeking to appeal to sophisticated clients and top-level partners should promote mentorship, ensure that attorneys from diverse backgrounds feel valued, and clarify policies about at-home work, says Patrick Moya at Quaero Group.