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Benefits
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October 11, 2024
Dem AGs Urge Judge To Rule Now On FDA Abortion Pill Regs
Washington and 16 other states with Democratic attorneys general are pressing a federal judge to force the U.S. Food and Drug Administration to lift restrictions on access to mifepristone, arguing that the agency is swayed by the controversy swirling around the abortion medication that has been proved to be safer than Tylenol, Viagra and insulin.
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October 11, 2024
Cornell Case Gives Justices Chance To Curb ERISA Litigation
The U.S. Supreme Court's recent decision to hear a retirement fee suit from Cornell workers means new precedent is coming that could harmonize an uneven set of circuit standards for what it takes to pursue a prohibited transaction claim under federal benefits law, attorneys say.
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October 11, 2024
3rd Circ. Won't Deem Bus Driver's Migraines FMLA-Eligible
A Pennsylvania public transit employee didn't have the requisite "serious health condition" to back his workplace retaliation claims under the federal Family Medical Leave Act, the Third Circuit ruled Friday, declining to reinstate a trial victory for the bus driver.
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October 11, 2024
Texas Hospital Settles Layoffs, Benefits Contributions Suit
A Texas hospital has agreed to settle a proposed class action alleging it laid off approximately one-third of its workforce without warning and unlawfully held onto employees' health insurance premiums and 401(k) contributions, according to a federal court filing.
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October 10, 2024
Northern Trust Strikes Deal To End 401(k) Management Suit
The Northern Trust Co. has agreed to settle a proposed class action claiming the financial services company weighed down its 401(k) plan with underperforming proprietary fund options, according to filings in Illinois federal court Thursday.
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October 10, 2024
Twitter Judge Seeks More Info On Cert. Bid In Layoff Fight
A California federal judge declined to rule Thursday on a request to certify a class of 115 ex-Twitter workers who claim they were booted without proper notice after Elon Musk acquired the company, saying he wanted more information after learning that most signed arbitration agreements.
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October 10, 2024
Chancery OKs $125M Deal, Fees In Discovery Merger Suit
Declaring it "a great settlement," a Delaware vice chancellor approved on Thursday a near chart-topping, $125 million deal to end stockholder challenges to Discovery Inc.'s $43 billion merger with AT&T in 2022, an amount eclipsed only by a $148.2 million pretrial deal in a 2016 case.
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October 10, 2024
Cigna Says NJ Plastic Surgeons Fraudulently Billed $8.5M
Two Cigna units said a New Jersey-based plastic and reconstructive surgery group billed excessively high fees and then waived patient cost-shares, fraudulently obtaining just over $8.5 million from the insurer in a scheme that dates back nearly a decade.
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October 10, 2024
CommScope Settles Ex-VP's Severance Benefits Suit
Wireless network provider CommScope Holding Co. has settled a former vice president's wrongful termination and denial of benefits suit alleging he was terminated over poor performance allegations fabricated by a supervisor who saw him as competition for a higher role in the company.
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October 10, 2024
SeaWorld Wraps Up Suit Over COVID Severance Pay
SeaWorld has inked settlements with two employees to resolve a California federal court suit claiming the business ignored its policies by failing to pay employees severance when they were furloughed during the COVID-19 pandemic.
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October 10, 2024
Ex-Citibank VP Says Bank Fired Her For Taking Parental Leave
A former Citibank senior vice president and head of the bank's fair employment practices said Thursday she lost her job after becoming pregnant and suffering from pregnancy-related complications, accusing Citibank of discrimination.
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October 10, 2024
Fiduciary Co. Asks Justices To Weigh ERISA Arbitration Denial
A fiduciary services provider urged the U.S. Supreme Court to review the Second Circuit's decision blocking arbitration in a proposed class action alleging a debt relief company overcharged an employee stock ownership plan, arguing the ruling demonstrated a "judicial hostility" to arbitration that justices have warned against.
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October 10, 2024
Ex-NBA Pro Seeks Leniency In Health Fraud Sentencing
A former NBA player who pled guilty to his role in a scheme to defraud the league's healthcare plan and became a government witness has asked a Manhattan federal judge to be sentenced "as leniently as possible" and to only be assessed a $100 fine.
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October 09, 2024
Boeing Rescinds Wage Offer As IAM Strike Enters 4th Week
Boeing has withdrawn its most recent wage offer to more than 33,000 employees who've been on strike for nearly a month, prolonging a labor standoff with the International Association of Machinists and Aerospace Workers that has grounded some of Boeing's key production lines to a halt.
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October 09, 2024
Insurer Wins Ex-PwC Exec's Long-Term Disability Suit
An Illinois federal judge handed Hartford Life and Accident Insurance Co. a win in a federal benefits lawsuit from a former PricewaterhouseCoopers LLP executive who alleged she was wrongly denied long-term disability benefits after fibromyalgia left her unable to continue working.
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October 09, 2024
Electronics Co. Hid Auto Segment Slump, Investor Claims
Electronic equipment manufacturing company Methode Electronics has been hit with a proposed class action alleging it concealed the full extent of sagging sales in its automotive division, in which General Motors was a top client.
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October 09, 2024
Mich. Justices Open To Atty Fee Bid In Legal Malpractice Case
The Michigan Supreme Court appeared receptive Wednesday to arguments from a lab-grown orchid company that it should be allowed to recover attorney fees incurred in an employment lawsuit the company claimed resulted from legal malpractice.
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October 09, 2024
Fla. University Inks $1.5M Deal In 401(k) Mismanagement Suit
A Florida university struck a $1.5 million deal with a class of employees that claimed the school weighed down its $400 million retirement plan with excessive recordkeeping fees and shoddy investment funds.
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October 08, 2024
Judge Tells VA To Quickly Develop Housing For LA Veterans
The U.S. Department of Veteran Affairs and experts picked by a class of homeless, disabled military veterans were ordered by a California federal judge to collaborate on plans for veteran housing on a Los Angeles campus.
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October 08, 2024
Student Loan Cos. Settle Ex-Exec's Severance Dispute
Student loan companies Navient Corp. and Earnest LLC told the Ninth Circuit they had reached a settlement to end a former executive's lawsuit alleging he was wrongly denied severance benefits, just days before a dual-sided appeal in the case was set for panel arguments on Thursday.
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October 08, 2024
Airlines Say Chicago Sick Leave Law Would Impact Business
An organization representing the largest U.S. airlines urged an Illinois federal court to keep afloat its challenge to Chicago's new paid sick leave law, saying its claims that the statute would impact flight prices and routes are fact-intensive and should proceed to discovery.
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October 08, 2024
1st Circ. Eyes Revival Of Welch's Execs' Pension Fight
The First Circuit appeared receptive Tuesday to former Welch's executives who are seeking to revive a suit claiming they were shortchanged by a supplemental retirement plan, with two judges pointing out conflict-of-interest disputes on appeal that the lower court left unaddressed.
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October 08, 2024
Willkie Adds Faegre ERISA Litigation Co-Head With Duo Hire
Willkie Farr & Gallagher LLP is expanding its Midwest team, announcing Tuesday it is bringing in a Faegre Drinker Biddle & Reath LLP Employee Retirement Income Security Act litigator and a Chapman and Cutler LLP finance expert as partners in its Chicago office.
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October 08, 2024
Colo. Freed From Union Protest Of Southwest Sick Leave Deal
Colorado isn't on the hook for claims by a union representing Southwest Airlines flight attendants related to a settlement between the state and airline about a sick leave law, a state court judge ruled, finding the union lacks standing to raise its allegations.
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October 07, 2024
Pepsi Employee Sues Over Health Plan's 'Tobacco Surcharge'
A Pepsi employee has hauled the snack and beverage multinational into New York federal court, alleging in a proposed class action that the company unlawfully imposes a "tobacco surcharge" on employees who use tobacco products while failing to adequately notify employees that they can instead join a company wellness program.
Expert Analysis
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How To Comply With Chicago's New Paid Leave Ordinance
Chicago's new Paid Leave and Paid Sick and Safe Leave Ordinance went into effect earlier this month, so employers subject to the new rules should update leave policies, train supervisors and deliver notice as they seek compliance, say Alison Crane and Sarah Gasperini at Jackson Lewis.
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Dueling Calif. Rulings Offer Insight On 401(k) Forfeiture Suits
Two recent decisions from California federal courts regarding novel Employee Retirement Income Security Act claims around 401(k) forfeitures provide early tea leaves for companies that may face similar litigation, offering reasons for both optimism and concern over the future direction of the law, say Ashley Johnson and Jennafer Tryck at Gibson Dunn.
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Loss Causation Ruling Departs From Usual Securities Cases
A California federal court recently dismissed Ramos v. Comerica, finding that the allegations failed to establish loss causation, but the reasoning is in tension with the pleading-stage approaches generally followed by both courts and economists in securities fraud litigation, say Jesse Jensen and Aasiya Glover at Bernstein Litowitz.
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Opinion
Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Series
Serving In The National Guard Makes Me A Better Lawyer
My ongoing military experience as a judge advocate general in the National Guard has shaped me as a person and a lawyer, teaching me the importance of embracing confidence, balance and teamwork in both my Army and civilian roles, says Danielle Aymond at Baker Donelson.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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Accidental Death Ruling Shows ERISA Review Standard's Pull
The Eleventh Circuit’s recent accidental death insurance ruling in Goldfarb v. Reliance Standard Life Insurance illustrates how an arbitrary and capricious standard of review in Employee Retirement Income Security Act denial-of-benefits cases creates a steep uphill battle for benefit claimants, says Mark DeBofsky at DeBofsky Law.
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Opinion
States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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50 Years Later, ERISA Remains A Work In Progress
A look at the 50 years since the Employee Retirement Income Security Act’s passage shows that while the law safeguards benefits through vesting rules, fiduciary responsibilities and anti-discrimination provisions, the act falls short in three key areas, says Carol Buckmann at Cohen & Buckmann.
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Series
Solving Puzzles Makes Me A Better Lawyer
Tackling daily puzzles — like Wordle, KenKen and Connections — has bolstered my intellectual property litigation practice by helping me to exercise different mental skills, acknowledge minor but important details, and build and reinforce good habits, says Roy Wepner at Kaplan Breyer.
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1st Gender Care Ban Provides Context For High Court Case
The history of Arkansas' ban on gender-affirming medical care — the first such legislation in the U.S. — provides important insight into the far-reaching ramifications that the U.S. Supreme Court's decision in U.S. v. Skrmetti next term will have on transgender healthcare, says Tyler Saenz at Baker Donelson.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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In Memoriam: The Modern Administrative State
On June 28, the modern administrative state, where courts deferred to agency interpretations of ambiguous statutes, died when the U.S. Supreme Court overruled its previous decision in Chevron v. Natural Resources Defense Council — but it is survived by many cases decided under the Chevron framework, say Joseph Schaeffer and Jessica Deyoe at Babst Calland.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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2nd Circ. ERISA Ruling May Help Fight Unfair Arb. Clauses
The Second Circuit recently held that a plaintiff seeking planwide relief under the Employee Retirement Income Security Act cannot be compelled to individual arbitration, a decision that opens the door to new applications of the effective vindication doctrine to defeat onerous and one-sided arbitration clauses, say Raphael Janove and Liana Vitale at Janove.