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Benefits
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February 14, 2025
Loper Bright Doesn't Sink ESG Rule, Texas Judge Says
A Texas federal judge on Friday again upheld a Biden-era rule allowing retirement fiduciaries to consider issues like climate change and social justice when choosing investments, ruling that the rule was still valid despite the U.S. Supreme Court doing away with a decades-long approach to interpreting statutes.
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February 14, 2025
Bed Bath & Beyond To Pay $1.95M To 2,100 For ERISA Class
Bed Bath & Beyond will pay $1.95 million to settle a proposed class action by 2,100 employees who claimed its 401(k) committee mismanaged their retirement savings plan amid growing financial problems before terminating it altogether after filing for bankruptcy, according to a preliminary approval motion Friday in New Jersey federal court.
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February 14, 2025
4th Circ. To Hear Deloitte Appeal Of SCANA Class Cert. Ruling
The Fourth Circuit has agreed to hear a case that could overturn the class status of SCANA Corp. investors accusing Deloitte of issuing misleading audit reports about the progress being made on a failed $9 billion nuclear energy project, saying it would hear arguments over whether a U.S. Supreme Court model on damages was properly applied to the class certification order.
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February 14, 2025
FTC's Ferguson, PBMs Agree: Nix Leader Removal Safeguards
Federal Trade Commission Chairman Andrew N. Ferguson offered his own support Friday for enabling the president to readily fire independent agency commissioners at the FTC and beyond, a day after pharmacy benefit managers cited the new U.S. Department of Justice policy in their own battle with the FTC.
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February 14, 2025
Trump Aims To End Limits On President's Power To Fire
President Donald Trump has his sights set on taking down a 90-year-old U.S. Supreme Court ruling that protects certain government officials from being fired, a U.S. Department of Justice letter confirms, and he plans to leverage his prior legal victories to deliver the precedent's death knell and expand presidential power.
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February 14, 2025
Drug Costs, State Laws Fuel Push For Fed. Action On PBMs
Skyrocketing prescription drug costs and a proliferation of state laws are driving renewed calls from employers and benefit plan administrators for Congress to enact federal legislation changing how pharmacy benefit managers do business, experts say.
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February 14, 2025
Judge Rejects NLRB Bid To Reopen Post-Gazette Union Talks
The publisher of the Pittsburgh Post-Gazette will not be forced to return to bargaining with several unions representing its striking print production employees, after a federal judge ruled that the National Labor Relations Board had not convinced her that the publisher had bargained in bad faith.
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February 14, 2025
Defunct Media Co. Agrees To Resolve WARN Act Class Action
Former digital media startup The Messenger has struck a deal to end a class action alleging it failed to give hundreds of workers enough notice about its impending layoffs and shutdown, the company told a New York federal court.
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February 14, 2025
2nd Judge Blocks Trump Trans Health Order, Chides DOJ Atty
A Washington federal judge on Friday put a second temporary block on President Donald Trump's executive order targeting funding for gender-affirming care for people younger than 19, at a Seattle hearing where the judge said she was extremely frustrated with a federal government attorney's inability to answer questions about the order's discriminatory impact on transgender youth.
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February 14, 2025
Trump Illegally Fired FLRA Chair, Suit Says
The former chair of the Federal Labor Relations Authority is the latest government official to sue President Donald Trump, saying in a complaint filed in D.C. federal court that she was fired illegally.
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February 14, 2025
DOJ Takes Military Bias Dispute With Nev. To 9th Circ.
The U.S. Department of Justice said it will appeal to the Ninth Circuit after a federal judge tossed its suit accusing the state of Nevada and its public employees retirement system of overcharging service members for pension credits.
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February 13, 2025
Tesla, Objector Appeal $730M Chancery Board Pay Deal
Tesla Inc. and a stockholder objector have appealed a Delaware Court of Chancery approval of the return of more than $730 million in director stock, option and grant awards to the company that would resolve a suit accusing the electric-car maker's board of raking in "outrageous" compensation packages that cost the company hundreds of millions of dollars.
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February 13, 2025
Old Dominion Worker's Gender-Affirming Care Suit Dropped
A transgender woman participating in an Old Dominion employee health plan agreed to drop her suit alleging she was wrongly denied gender-affirming care coverage for facial hair removal after a Washington federal judge dismissed the case in January, citing a settlement of the dispute.
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February 13, 2025
Maryland Judge Blocks Trump's Orders On Trans Healthcare
A Maryland federal judge on Thursday temporarily blocked the Trump administration from restricting gender-affirming care for people under the age of 19 and required the administration to keep in place federal funding for healthcare providers that provide transgender care.
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February 13, 2025
ADP 401(k) Participants Win Cert. For 50K ERISA Class
More than 50,000 ADP 401(k) plan participants scored class certification Thursday in their lawsuit accusing the company of retaining poorly performing investments and overcharging them for recordkeeping fees, after a New Jersey federal judge found their claims are typical since they stem from the same alleged fiduciary duty breach by ADP.
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February 13, 2025
6th Circ. Stands By Revival Of Parker-Hannifin 401(k) Suit
The Sixth Circuit declined Parker-Hannifin Corp.'s bid for an en banc review of its ruling that revived a proposed class action from workers who claimed the technology company loaded down its retirement plan with underperforming and costly investment funds.
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February 13, 2025
Amazon Worker's $1.6M Fee Bid Slashed In Military Bias Suit
A Washington federal judge awarded an Amazon worker a fraction of the $1.6 million in attorney fees he requested in his recently settled suit claiming the company blocked him from promotions due to his military service, finding the outcome of the case didn't warrant an amount that high.
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February 12, 2025
Trump Picks Encore Fiduciary Founder As DOL Benefits Chief
The Trump administration on Wednesday nominated Encore Fiduciary's principal and professional fiduciary liability expert Daniel Aronowitz to steer the US Department of Labor's employee benefits division, which produces and enforces federal regulations that apply to employer-provided retirement and healthcare plans.
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February 12, 2025
VA Blocked From Quickly Appealing Systemic Racism Suit
The U.S. Department of Veterans Affairs cannot immediately appeal a Connecticut federal judge's refusal to slap down a lawsuit alleging systemic discrimination at VA hospitals because the case does not present novel issues requiring midstream clarification, the same judge who advanced the case last March has ruled.
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February 12, 2025
Boeing Brass Face Chancery Suit Over Safety Breach Scandal
Public employee pension funds in Ohio and Oklahoma have launched a derivative suit in Delaware's Chancery Court against Boeing board members and executives, seeking damages on the aircraft company's behalf tied to production issues and multiple safety breaches involving several Boeing commercial passenger jets.
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February 12, 2025
2nd Circ. Backs Deferred Compensation Award Calculation
The Second Circuit refused Wednesday to upend how a trial court calculated that a defunct photo processing company owes ex-employees over $800,000 following mismanagement of a deferred compensation plan, but said the lower court needs to reassess who's on the hook for payment.
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February 12, 2025
Poultry Producers Can't Dodge Bid-Rigging Claims In MDL
An Illinois federal judge trimmed on Tuesday some conspiracy claims from a massive antitrust case against chicken producers, including Pilgrim's Pride and over a dozen others, but kept intact other bid-rigging allegations, finding that a class of restaurants and other direct buyers plausibly alleged the companies increased prices in parallel.
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February 12, 2025
IRS Issues Corp. Bond Monthly Yield Curve For Feb.
The Internal Revenue Service published on Wednesday the corporate bond monthly yield curve for February for use in calculations for defined benefit plans, as well as corresponding segment rates and other related provisions.
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February 12, 2025
Tobacco Fee Couldn't Have Injured Worker, Campbell's Says
The Campbell's Co. urged a New Jersey federal court to toss a suit from a former worker alleging the company's tobacco-free wellness program is violating federal benefits law by making workers who use tobacco pay more for health insurance, arguing the ex-employee can't bring his claims because he never enrolled in the program.
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February 12, 2025
States Can't Halt Funding Ban On Trans Care, DOJ Tells Court
Washington, Minnesota and Oregon can't block a White House executive order that cuts off federal funding for gender-affirming care for minors, President Donald Trump's administration told a Washington federal judge, arguing that the states' suit is premature and that the president has acted within his powers.
Expert Analysis
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Opinion
Confusing Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Disability Ruling Guides On Cases With Uncertain Causation
In Dime v. MetLife, a Washington federal court’s recent ruling in favor of a disability claimant instructs both claimants and insurers on the appropriate standard for establishing and making a disability determination when there is limited medical evidence explaining the disability’s cause, says Mark DeBofsky at DeBofsky Law.
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Tax-Free Ways To Help Employees After The LA Wildfires
Following the recent wildfires in Los Angeles, there are various tax-free ways to give employees the resources and flexibility they need, including simpler methods like disaster relief payments under Internal Revenue Code Section 139 and leave-sharing programs, and others that require more planning, says Ligeia Donis at Baker McKenzie.
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Series
Collecting Rare Books Makes Me A Better Lawyer
My collection of rare books includes several written or owned by prominent lawyers from early U.S. history, and immersing myself in their stories helps me feel a deeper connection to my legal practice and its purpose, says Douglas Brown at Manatt Health.
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Rethinking How To Engage Shareholders, Activists Via Proxies
This proxy season, companies should consider visually driven proxy statements that highlight the board's strengths, the alignment between executive compensation and performance, and a commitment to sustainability and risk management to earn the support of investors and fend off hostile acquirers, say Craig Clay and Ron Schneider at DFIN.
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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What Compensation Committees Must Keep In Mind In 2025
New disclosure obligations, an evolving discussion on the analysis of executive perks and updated proxy adviser policies — on top of a new presidential administration — are all important things compensation committees must pay close attention to in 2025, say attorneys at Simpson Thacher.
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Imagine The Possibilities Of Openly Autistic Lawyering
Andi Mazingo at Lumen Law, who was diagnosed with autism about midway through her career, discusses how the legal profession can create inclusive workplaces that empower openly autistic lawyers and enhance innovation, and how neurodivergent attorneys can navigate the challenges and opportunities that come with disclosing one’s diagnosis.
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A Halftime Analysis Of DOJ's Compensation Pilot Program
The U.S. Department of Justice appears to consider the first half of its three-year pilot program on compensation incentives and clawbacks to be proceeding successfully, so companies should expect prosecutors to emphasize the program and other compliance-related considerations early in investigations, say attorneys at Debevoise.
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Series
Documentary Filmmaking Makes Me A Better Lawyer
Becoming a documentary filmmaker has allowed me to merge my legal expertise with my passion for storytelling, and has helped me to hone negotiation, critical thinking and problem-solving skills that are important to both endeavors, says Robert Darwell at Sheppard Mullin.