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Mealey's ERISA

  • April 03, 2025

    Class Allegations, Most Parts Of Claims Survive In ERISA Benefit Statements Case

    LOS ANGELES — Resolving two motions filed by the remaining defendant in a pension benefit statements case that is on its second remand from the Ninth Circuit U.S. Court of Appeals, a California federal judge on April 2 declined to strike putative class allegations and partly denied dismissal.

  • April 03, 2025

    2nd Circuit Vacates Ruling That ERISA Claims In Pension Row Were Untimely

    NEW YORK — Saying in an April 3 nonprecedential summary order that the lower court “was permitted to find that the pension projection statements were incorporated by reference, but it erred in relying on the accuracy of the dates in those statements without providing the parties with the opportunity to submit additional materials,” the Second Circuit U.S. Court of Appeals vacated dismissal of a joint and survivor annuity (JSA) dispute over allegedly outdated mortality tables.

  • April 03, 2025

    Reversing Dismissal, 9th Circuit Lets ERISA Excessive Fee Plaintiff Try Again

    PASADENA, Calif. — Ruling in an unpublished April 2 memorandum disposition that dismissal of an Employee Retirement Income Security Act challenge to a retirement plan’s fees and funds for lack of standing should have been without prejudice, the Ninth Circuit U.S. Court of Appeals reversed and remanded.

  • April 03, 2025

    After Bench Trial In ESOP Deal Row, Illinois Federal Judge Rules For Defendants

    CHICAGO — Just over two years after the conclusion of a 14-day bench trial in a class action challenging a $265 million employee stock ownership plan (ESOP) deal, an Illinois federal judge ruled for the defendants on all remaining counts.

  • April 02, 2025

    Judge Allows Insureds’ ERISA, UCL Claims Against Cigna In AI Claims Denial Case

    SACRAMENTO, Calif. — A California federal judge granted in part and denied in part Cigna Corp. and its affiliate’s motion to dismiss insureds’ claims that they violated the Employee Retirement Income Security Act (ERISA) and California’s unfair competition law (UCL) by allegedly denying coverage using an artificial intelligence algorithm.

  • April 02, 2025

    Federal Judge Denies Remand, Finds ERISA Preempts Disability Benefits Case

    COLUMBUS, Ohio — A federal judge in Ohio ruled that a terminated employee’s amended complaint seeking damages relating to long-term disability (LTD) benefits cannot be remanded to an Ohio court because the claims are preempted by the Employee Retirement Income Security Actand establish federal question jurisdiction.

  • April 02, 2025

    Judge Rules Tennessee PBM Provisions Preempted As To Self-Funded ERISA Plans

    CHATTANOOGA, Tenn. — Concluding that parts of Tennessee law regarding pharmacy benefit managers (PBMs) are “preempted to the extent they purport to govern self-funded [Employee Retirement Income Security Act] plans,” a Tennessee federal judge issued a permanent injunction enjoining Tennessee Department of Commerce and Insurance Commissioner Carter Lawrence from enforcing those provisions against the plaintiff directly or indirectly.

  • April 02, 2025

    $4M Class Settlement Gets Initial OK In Lawsuit Over ESOP Deal

    PEORIA, Ill. — An Illinois federal judge has granted preliminary approval to a settlement that would resolve an employee stock ownership plan (ESOP) lawsuit on a class basis for $4 million; the development came as briefing remains suspended in an interlocutory appeal concerning whether the plaintiff can pursue planwide relief in a representative capacity given that class certification was denied due to intraclass conflict.

  • April 01, 2025

    Opt-Out Class Certified For 3 Issues In Multiemployer Health Plan ERISA Case

    CHICAGO — Saying in part that “common questions predominate over questions of liability but subside over questions of damages,” an Illinois federal judge on March 31 granted certification of an opt-out class “for only the issues of liability and injunctive relief, but not monetary damages” in an Employee Retirement Income Security Act case against the trustees of a nationwide multiemployer health plan over expenses and allocations.

  • April 01, 2025

    6th Circuit Sets Argument In 2 ERISA Pension Appeals Concerning Mortality Tables

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals has scheduled oral argument for May 8 in two appeals that involve use of decades-old mortality tables and whether part of the Employee Retirement Income Security Act requires “reasonable assumptions” in calculating certain pension benefits.

  • March 31, 2025

    Retirees’ PRT Case Against Lockheed Martin Survives Dismissal

    GREENBELT, Md. — The same day a similar suit was dismissed without prejudice in a District of Columbia federal court, retirees beat a dismissal motion in another one of the recent set of putative class Employee Retirement Income Security Act lawsuits challenging pension risk transfers (PRTs), with a Maryland federal judge ruling in their favor on March 28.

  • March 31, 2025

    Defendants In 1 PRT Suit Win Dismissal For Lack Of Standing

    WASHINGTON, D.C. — Defendants won one of the first two rulings on dismissal motions in a recent set of similar putative class Employee Retirement Income Security Act lawsuits challenging pension risk transfers (PRTs), with a District of Columbia federal judge on March 28 dismissing a case filed by Alcoa USA Corp. retirees on the grounds that they lack standing.

  • March 28, 2025

    Judge: ERISA Safe Harbor Provision Saves Surgeon’s Disability Insurance Dispute

    BALTIMORE — A federal judge in Maryland denied a disability insurer’s motion to dismiss an orthopedic surgeon’s amended complaint alleging breach of contract and bad faith in a disability benefits dispute, reasoning that the policy may fall under the Employee Retirement Income Security Act’s safe harbor provision.

  • March 26, 2025

    Ex-NFL Player To 5th Circuit: Dismiss Fee Award Appeal In Disability Benefits Row

    NEW ORLEANS — Arguing in part that “[i]t would be patently unfair to reverse [his] benefits award while citing his failures to properly appeal and then excuse the Plan’s own failures to properly appeal the Fee Award,” a former National Football League player filed a motion asking the Fifth Circuit U.S. Court of Appeals to dismiss the plan’s appeal of an award of more than $1.25 million in attorney fees and costs.

  • March 25, 2025

    Another ERISA Drug Costs Complaint Dismissed For Lack Of Standing

    MINNEAPOLIS — Ruling that the plaintiffs lack standing because they “are unable to show concrete individual harm, causation, and redressability,” a Minnesota federal judge on March 24 dismissed the initial complaint without prejudice in a putative Employee Retirement Income Security Act class action over alleged mismanagement of prescription drug benefits.

  • March 24, 2025

    Affirming Audit Order, 2nd Circuit Says Conduct Shows Adoption Of Agreements

    NEW YORK — In a March 21 summary order saying in part that the record shows that the appellants “engaged in conduct demonstrating” that they adopted two “Master Contracts with respect to all employees performing covered work,” a Second Circuit U.S. Court of Appeals panel upheld a summary judgment order granting multiemployer funds’ request for an audit in the Employee Retirement Income Security Act case.

  • March 24, 2025

    $4M Deal Proposed To Settle Lawsuit Challenging ESOP Transaction

    PEORIA, Ill. — An employee stock ownership plan (ESOP) lawsuit would be resolved on a class basis for $4 million, according to a motion for preliminary settlement approval that the named plaintiff filed in Illinois federal court; the development comes as briefing remains suspended in an interlocutory appeal concerning whether the plaintiff can pursue planwide relief in a representative capacity given that class certification was denied due to intraclass conflict.

  • March 21, 2025

    1st Circuit Affirms That ERISA Preempts State Law Wrongful Death Claim

    BOSTON — Rejecting the appellant’s argument that a 2020 U.S. Supreme Court decision “overrules prior law and requires reinstatement of” a wrongful death claim asserted under Massachusetts state law, a First Circuit U.S. Court of Appeals panel affirmed summary judgment for an insurer, ruling the Employee Retirement Income Security Act preempts the claim “as a matter of law.”

  • March 20, 2025

    Consent Order Worth More Than $20M Resolves Suit Against TPA Of Many Plans

    MADISON, Wis. — A Wisconsin federal judge on March 19 signed a consent order and judgment under which the third-party administrator (TPA) for hundreds of self-funded employee welfare benefit plans will “pay or cause to be paid at least $20,250,000,” plus civil penalties, to resolve a suit in which the U.S. Department of Labor (DOL) challenged adverse benefit determinations regarding hospital emergency services claims and urinary drug screening claims.

  • March 20, 2025

    Insurer To 4th Circuit: Overturn Ruling In Long Covid Disability Benefits Case

    RICHMOND, Va. — Arguing that the lower court improperly applied de novo review and wrongly concluded that the claimant showed that she is disabled from working as an engineer because of long COVID symptoms, an insurer urged the Fourth Circuit U.S. Court of Appeals to reverse a judgment that the claimant is owed past-due long-term disability (LTD) benefits.

  • March 19, 2025

    Judge Rebuffs Appointments Challenge In ERISA Benefits Suit Over Spinoff

    PHILADELPHIA — After conducting a bench trial in an Employee Retirement Income Security Act class action over corporate restructuring that affected retirement benefits and issuing a mixed December ruling as to liability, a Pennsylvania federal judge on March 18 denied a motion in which the defendants sought emergency relief regarding his appointment of “an independent technical adviser on ERISA” and a special master as to remedies.

  • March 19, 2025

    Citing Cooperation Provision, Judge Rules For Insurer In LTD Benefits Row

    NEW BERN, N.C. — Noting that briefing focused on a preexisting condition provision, a North Carolina federal judge granted summary judgment in favor of an insurer that denied long term disability (LTD) benefits to a claimant who had multiple sclerosis on the other ground the insurer cited in its denial, violation of a claimant cooperation provision.

  • March 18, 2025

    Settlement With $8.75M Payment Proposed In ERISA Suit Over 401(k) Management

    SAN FRANCISCO — Plaintiffs who sued over allegedly imprudent management of a 401(k) plan have moved in California federal court to certify a settlement class and to request preliminary approval of a deal that would include an $8.75 million payment and other relief.

  • March 17, 2025

    Home Depot To High Court: Don’t Tackle ERISA Burden-Shifting Issue

    WASHINGTON, D.C. — Responding to a U.S. Supreme Court request regarding to a certiorari petition that asks whether “burden-shifting applies to the element of causation under” part of the Employee Retirement Income Security Act, The Home Depot Inc. and related parties argue in a March 14 brief that the challenged ruling was correct, that “the burden of proof makes no difference to the bottom-line result” here and that the issue “is relatively unimportant.”

  • March 17, 2025

    Drug Costs Under Employee Health Plan Are Focus Of Another ERISA Suit

    NEW YORK — In an Employee Retirement Income Security Act fiduciary duty complaint similar to those filed in two other putative class cases, former and current JPMorgan Chase & Co. employees sued the company and related defendants over the prescription drug part of its health plan, alleging that mismanagement is evident from prices paid to pharmacy benefits managers (PBMs) “for many generic drugs that are widely available at drastically lower prices.”