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Benefits
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August 28, 2024
'Big Baby' Scores Delayed Prison Date In Health Fraud Case
Former Boston Celtics forward Glen "Big Baby" Davis won approval from a Manhattan federal judge Wednesday to push back his prison surrender date on healthcare fraud charges so he can wrap up production of a documentary film.
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August 28, 2024
Insurer Avoids Covering $1.9M Conn. Securities Judgment
A Liberty Mutual unit has no duty to cover an approximately $1.9 million stipulated judgment a couple won after alleging that certain officials of a company Liberty insured defrauded them into investing, a Connecticut state court ruled, finding that covering the judgment would violate state public policy.
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August 28, 2024
Conn. Investment Firm Withheld Pay, Commissions, Suit Says
Six former employees of Connecticut investment advisory firm Excel Wealth Management LLC have sued the company and its members in state court seeking hourly wages or commissions they claimed they were never paid, with some alleging they were terminated for speaking out about their compensation.
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August 28, 2024
Class Attys Seek Review Of Del. Magistrate's Doc Suit Toss
Stockholder attorneys probing Paramount Global's allegedly conflicted Skydance Media merger in Delaware's Chancery Court have challenged as unsupportable and unprecedented a magistrate's rejection of anonymously sourced news reports in a dismissal of their bid for court-ordered document access.
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August 28, 2024
Ga. Appeals Court Says Worker Should Get Pandemic Aid
The Georgia Court of Appeals overturned a superior court order affirming the denial of pandemic unemployment assistance benefits to a college student who worked part-time at a Chick-fil-A, saying both the trial court and the Georgia Department of Labor's review board wrongly found he quit his job for personal reasons.
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August 28, 2024
Auto Parts Co. Secures Initial OK For $2.9M 401(k) Deal
A Michigan federal judge gave an initial green light Wednesday to a $2.9 million agreement to resolve a class action accusing auto parts manufacturer Magna International of failing to remove flawed investment options from its retirement plan and costing workers millions of dollars in retirement savings.
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August 28, 2024
Conn. Dental Practices Settle False Claims Case For $1.7M
Three dental practices in Connecticut and their owners have paid a $1.7 million settlement after federal and state authorities accused them of using an illegal patient recruiting tactic and paying kickbacks that ripped off Medicaid.
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August 28, 2024
DOL Backs IBM Retirees' Bid To Revive Suit At 2nd Circ.
The U.S. Department of Labor urged the Second Circuit to revive a proposed class action alleging IBM shorted retirees on pension payments through the use of outdated mortality data, stating the lower court's ruling tossing the case "flies in the face" of U.S. Supreme Court precedent.
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August 27, 2024
'Big Baby' Asks To Wrap Documentary Before Going To Prison
Former Boston Celtics forward Glen "Big Baby" Davis asked a Manhattan federal judge Tuesday to delay the start of his 40-month prison sentence for his role in a scheme to submit fraudulent invoices to an NBA healthcare plan in order to finish filming a documentary about his life.
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August 27, 2024
Deutsche Bank, Rabo Beat Antitrust Suit Over Euro Bonds
A New York federal judge has tossed an antitrust suit against Deutsche Bank AG and Rabo Securities USA, alleging they conspired to fix the price of European government-issued euro-dominated bonds sold throughout the U.S. between 2005 and 2016, saying the plaintiffs lack standing.
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August 27, 2024
Bank Seeks To End Claims It Mismanaged Treasury Program
A bank is seeking to permanently dismiss a suit accusing it of misleading an investor about its oversight of a U.S. Department of Treasury contract, saying despite amending its case three times, the investor hasn't connected any sustained stock loss to contract issues.
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August 27, 2024
Judges Upend Alaska Airlines Loss, Blame Jury Instruction
A Washington state appeals court on Tuesday threw out a jury verdict granting an Alaska Airlines flight attendant workers' compensation for catching COVID-19 while away from home for her job, in an opinion that said a jury instruction misstated a legal doctrine covering traveling workers.
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August 27, 2024
AT&T Tells Justices 9th Circ. Erred In Reviving 401(k) Suit
AT&T urged the U.S. Supreme Court to review a Ninth Circuit ruling that upended its defeat of a class action alleging the company mismanaged its employee 401(k) plan, saying Tuesday the appeals court deepened a circuit split that threatens to cause chaos for plan administrators.
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August 27, 2024
Salesforce To Pay $1.35M To 50K-Plus ERISA Class
Salesforce will pay $1.35 million to more than 50,000 employees who accused the company, its board and its investment committee of violating the Employee Income Retirement and Security Act by picking expensive investment options and underperforming funds, according to a preliminary approval motion filed in California federal court.
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August 27, 2024
Grocery Co. Appeals Union Pension Fund's Win To 7th Circ.
A grocery retailer will appeal its Illinois federal court loss to the Seventh Circuit in a dispute over union pension fund withdrawal liability, after the court in July backed an arbitrator's decision that upheld the union's calculation of what was owed as compliant with federal benefits law.
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August 27, 2024
Travel Co. Inks $1.7M Deal To End 401(k) Mismanagement Suit
A travel company has agreed to pay $1.7 million to end a Nevada federal lawsuit alleging it loaded down its workers' $370 million 401(k) plan with excessive recordkeeping fees and costly investment funds in violation of its fiduciary duties under federal benefits law.
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August 27, 2024
Hospital CEO Says President Lied About Co.'s Financial State
The former CEO of a Nevada-based psychiatric hospital company claims the company's president knowingly transferred contracts to his own business so he could later claim the hospital company didn't have the money to honor the CEO's agreements, according to a lawsuit filed in Colorado federal court.
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August 27, 2024
11th Circ. Allows Fla. Law Banning Trans Care To Take Effect
The Eleventh Circuit has said a Florida law can take effect that bans gender-affirming care for transgender minors and restricts it for adults, granting the state's bid to scrap an injunction barring the law while it appeals a lower court ruling that found the statute unconstitutional.
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August 27, 2024
6th Circ. Reverses Geico's Win In Agents' Benefits Suit
The Sixth Circuit upended Geico's win in a lawsuit from insurance agents accusing it of misclassifying them as independent contractors and forcing them to lose out on benefits, saying more evidence is needed to determine if the insurer relied on unauthentic documents to get the suit tossed.
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August 27, 2024
Vt. High Court Affirms Denial Of Benefits To Marijuana Patient
The Vermont Supreme Court has affirmed an administrative law judge's decision not to issue a declaratory ruling whether off-duty medical cannabis use counts as misconduct for the purposes of terminating and denying benefits to a former transportation company employee.
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August 26, 2024
Banks' $20M Platinum Traders Antitrust Deal Gets Initial OK
A New York federal judge preliminarily approved Saturday a $20 million deal to resolve a nearly decade-old putative class action alleging Goldman Sachs, German industrial company BASF and two other banks fixed platinum and palladium prices.
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August 26, 2024
Funds Say Norfolk Southern Can't Ditch Derailment Fraud Suit
Pension funds have told a Georgia federal judge that they've laid out in exacting detail their allegations that Norfolk Southern eroded safety standards by embarking on risky cost-cutting moves and slashing its workforce, culminating in last year's fiery derailment in East Palestine, Ohio, and ultimately backfiring on investors.
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August 26, 2024
Siemens Misused 401(k) Plan Funds, ERISA Class Claim Says
The global technology and manufacturing giant Siemens Corp. wrongfully used forfeited 401(k) retirement plan assets to reduce the company's contributions instead of using the money to pay plan expenses, according to a proposed class action filed Friday in New Jersey federal court.
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August 26, 2024
Former X Worker Seeks Class Certification In Bonus Suit
A former X Corp. employee asked a California federal court to greenlight an approximately 2,200-member class in his lawsuit alleging the company reneged on promised bonuses after Elon Musk took over the social media company formerly known as Twitter.
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August 26, 2024
Insurer Wants Out Of Pa. Wig Widow's $4.5M Benefit Dispute
Lincoln National Life Insurance Co. asked a Pennsylvania state court to let it bow out of a dispute between a Pittsburgh wig and healthcare magnate's widow and his family partnership, arguing Monday that the court, not the insurer, had to choose between competing claims for a $4.5 million policy payout.
Expert Analysis
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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.
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Series
Boxing Makes Me A Better Lawyer
Boxing has influenced my legal work by enabling me to confidently hone the skills I've learned from the sport, like the ability to remain calm under pressure, evaluate an opponent's weaknesses and recognize when to seize an important opportunity, says Kirsten Soto at Clyde & Co.