A Texas federal judge refused to toss a proposed class action against Whole Foods from employee health plan participants who challenged a surcharge on workers who used tobacco, ruling allegations should proceed to discovery that the fees violated multiple provisions of federal benefits law.
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THURSDAY, JANUARY 22, 2026 Law360 iOS App Law360 Android App Follow Law360 on Facebook Follow Law360 on LinkedIn Follow Law360 on Twitter

TOP NEWS

Whole Foods Can't Escape Workers' Tobacco Fee Suit

By Kellie Mejdrich

A Texas federal judge refused to toss a proposed class action against Whole Foods from employee health plan participants who challenged a surcharge on workers who used tobacco, ruling allegations should proceed to discovery that the fees violated multiple provisions of federal benefits law.

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9th Circ. Reverses Ruling In $4.1M Union Health Plan Suit

By Irene Spezzamonte

A California district court erred in concluding a medical center where union dockworkers received treatments was not a hospital, a split Ninth Circuit panel ruled Wednesday, sending the workers' $4.1 million claims dispute against a multiemployer health plan back to the lower court.

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UPS Strikes Deal In Class Action Over Pay For Military Leave

By Benjamin Morse

UPS has reached a deal to end a class action alleging the package delivery giant violated federal law by failing to pay drivers for short-term military leave despite providing compensation for jury duty and other short-term absences, according to a filing in Washington federal court.

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Starbucks Settles COBRA Suit From Ex-Worker's Spouse

By Kellie Mejdrich

Starbucks has agreed to settle a proposed class action from employee health plan participants and their beneficiaries alleging lapses in the coffee chain retailer's post-employment medical insurance notices, according to filings in Florida federal court.

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ENFORCEMENT & COMPLIANCE

Schwab Nixed From DOL Enforcement Suit Against Other Firm

By Katryna Perera

A Pennsylvania federal judge on Wednesday dismissed two Schwab companies from a U.S. Department of Labor enforcement case, finding the financial services providers' participation was no longer needed in the agency's dispute against another firm.

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LITIGATION

Ex-Military Heads Back Sen. Kelly In Suit Against Hegseth

By Rae Ann Varona

Dozens of former military leaders have backed U.S. Sen. Mark Kelly, D-Ariz., in challenging Defense Secretary Pete Hegseth's bid to reduce his Navy rank, saying Kelly's punishment for "accurate statements of military law" discourages veterans from exercising their own First Amendment rights.

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CVS, UnitedHealth, Express Scripts Duck PBM Antitrust Suit

By Lauren Berg

A Missouri federal judge has thrown out a proposed class action accusing the country's three largest pharmacy benefit managers — owned by CVS, UnitedHealth Group and Cigna Group — of inflating prescription costs through their rebating practices.

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EXPERT ANALYSIS

5 Action Steps For Employers Facing 27 Pay Periods In 2026

In 2026, some employers may have 27 pay periods, instead of the usual 26, which can cause budgeting and compliance headaches, particularly for salaried employees, but there is still time to develop a strategy to avoid payroll compliance problems, say attorneys at Fisher Phillips.

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How A 1947 Tugboat Ruling May Shape Work Product In AI Era

Rapid advances in generative artificial intelligence test work-product principles first articulated in the U.S. Supreme Court’s nearly 80-year-old Hickman v. Taylor decision, as courts and ethics bodies confront whether disclosure of attorneys’ AI prompts and outputs would reveal their thought processes, say Larry Silver and Sasha Burton at Langsam Stevens.

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LEGAL INDUSTRY

Ex-Baker McKenzie Atty Alleges Assault In New DC Lawsuit

By Alison Knezevich

A former Baker McKenzie associate who was sued for defamation over a series of social media posts accusing the firm's Washington, D.C., managing partner of sexual assault has brought her own lawsuit, marking the first time she publicly detailed her allegations in court records.

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Trump Calls For Prosecution Of Jack Smith Post-Hearing

By Courtney Bublé

Shortly after former special counsel Jack Smith gave his first public congressional testimony on the Trump cases, in which he warned the rule of law should not be taken for granted, President Donald Trump said he should be prosecuted.

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Goldstein Prosecutors Unveil Conflicting Cash Source Claims

By Jared Foretek

A former lawyer at SCOTUSblog founder Thomas Goldstein's firm said Thursday that Goldstein told coworkers that the more than $960,000 in cash he brought off a flight from Hong Kong — the source of which is integral to the government's case — had come from a client.

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ABA Outlines Limited Atty Duty To Give Info To Former Clients

By Lynn LaRowe

The American Bar Association said attorneys have a limited responsibility to convey information to former clients or successor counsel that was not within the client's file, when doing so is necessary to protect a client's interests and reasonably practicable, according to a new ethics opinion.

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Proposed Subpoena Rule Change Raises Victim Privacy Fears

By Brandon Lowrey

A proposal to loosen restrictions on the use of federal criminal subpoenas would endanger and further traumatize victims of crime, most of whom lack legal representation to fight the invasive demands, victims' rights advocates told a federal rules advisory committee on Thursday.

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Pa. Justices Say Judge's Partisan Posts Warrant Suspension

By Hayley Fowler

Pennsylvania's highest court has adopted a balancing test for restricting a sitting judge's free speech outside the context of an election and, in doing so, affirmed the suspension of a state court judge who it said damaged the court's appearance of impartiality by making political posts on social media.

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Brief

Courthouse News Drops Access Suit Against DC Court Clerk

By Emily Sawicki

National litigation news outlet Courthouse News Service has voluntarily and permanently dropped claims against a Washington, D.C., Superior Court clerk and the executive officer of the D.C. courts over filing delays, with both sides agreeing to pay their own costs.

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Promo that reads 2025 Practice Groups of the Year

LAW FIRMS IN TODAY'S NEWS

Alston & Bird

Arnold & Porter

Baker McKenzie

Burns Charest

Davis Wright Tremaine

Fisher & Phillips

Goldstein & Russell

Greenberg Traurig

Gupta Wessler

Gustafson Gluek

Hinkle Law Firm

Husch Blackwell

Jackson Lewis PC

Jeffers Danielson

Justice for Justice LLC

Kang Haggerty

Kantor & Kantor

Langsam Stevens

Littler Mendelson

Morgan Lewis

Munger Tolles

Outten & Golden

Peter Romer-Friedman Law

Quinn Emanuel

Riverside NW Law Group

Seyfarth Shaw

Sharp Law LLP

Siri & Glimstad

Spencer Fane

Thomas & LoCicero

Wenzel Fenton

Williams & Connolly

Zimmerman Reed

COMPANIES IN TODAY'S NEWS

AT&T Inc.

Aetna Inc.

American Bar Association

Burke Inc.

CVS Health Corp.

Courthouse News Service Inc.

Deloitte Touche Tohmatsu Ltd.

Express Scripts Holding Co.

International Longshore & Warehouse Union

KBR Inc.

LexisNexis Legal & Professional

Meta Platforms Inc.

OpenAI OpCo LLC

OptumRx Inc.

Pacific Maritime Association

Protect Democracy Project Inc.

RELX PLC

ROSS Intelligence

Starbucks Corp.

States United Democracy Center

T-Mobile US Inc.

The Charles Schwab Corp.

The Cigna Group

The UPS Store

Thomson Reuters Corp.

United Parcel Service Inc.

UnitedHealth Group Inc.

Verizon Communications Inc.

Whole Foods Market Inc.

GOVERNMENT AGENCIES IN TODAY'S NEWS

Federal Bureau of Investigation

Federal Reserve System

Federal Trade Commission

Internal Revenue Service

Medical Board of California

National Aeronautics and Space Administration

New York Attorney General's Office

Pennsylvania Supreme Court

U.S. Army

U.S. Attorney's Office for the District of Maryland

U.S. Court of Appeals for the Ninth Circuit

U.S. Court of Appeals for the Third Circuit

U.S. Department of Defense

U.S. Department of Homeland Security

U.S. Department of Justice

U.S. Department of Labor

U.S. District Court for the District of Columbia

U.S. District Court for the District of Delaware

U.S. District Court for the District of Maryland

U.S. District Court for the Eastern District of Pennsylvania

U.S. District Court for the Middle District of Florida

U.S. District Court for the Western District of Missouri

U.S. District Court for the Western District of Pennsylvania

U.S. District Court for the Western District of Texas

U.S. House of Representatives

U.S. Navy

U.S. Senate

U.S. Supreme Court