Class action lawsuits continue to target ERISA fiduciaries for their decisions about investment options and fees. However, even class action complaints that seem supported by citations to comparator plans or investment funds can be vulnerable to attack at the pleading stage.
Articles Discussing ERISA.
Fourth Circuit Establishes New Standards for Plaintiffs Seeking Unjust Enrichment as an Equitable Remedy under ERISA
The Fourth Circuit weighed in on the complex area of equitable relief under ERISA § 502(a)(3), holding that recovery under an unjust enrichment theory may provide claimants with an alternate path to monetary relief under the statute.
Fourth Circuit Affirms Aon’s Trial Victory in Investment Suit
The Fourth Circuit affirmed Aon Hewitt Investment Consulting’s trial victory in a 250,000-member class action suit alleging that Aon breached ERISA’s fiduciary duties.
Aon was initially the Lowe’s 401(k) plan’s investment advisor and later was engaged as the plan’s 3(38) delegated fiduciary. The plaintiffs’ fiduciary breach claims alleged that,
Ads Related to Health Plan Fees Raise Questions on the Next Excessive Fee Suit Targets
Is a new wave of ERISA fiduciary litigation targeting group health plan sponsors on the horizon? There have already been a few examples of health plan fee cases, such as claims challenging the billing practice between insurers and their subcontractors or challenging commissions paid in connection with multi-employer plans.
ERISA Fiduciary Breach Action Narrowly Hurdles Motion to Dismiss in Minnesota
An ERISA action alleging breaches of fiduciary duty recently cleared the pleadings stage in Minnesota district court, narrowly avoiding a complete dismissal. See Schave v. CentraCare Health Sys., No. 22-cv-1555 (WMW/LIB), 2023 U.S. Dist. LEXIS 13786 (D. Minn. Jan. 27, 2023).
In Schave, a CentraCare employee challenged the healthcare
Employers Prepare for Thawing ERISA Deadlines
With the pandemic winding down, deadlines for employee benefit plans governed by the Employee Retirement Income Security Act (ERISA) will be resuming. Two different emergencies affect employer-sponsored group health plans: the national emergency and the public health emergency.
Seventh Circuit Case Confirms that “Full and Fair Review” of Disability Claims Requires Disclosure of New Evidence Before Denying Appeals
A recent federal appeals court case clarifies that, under ERISA, the regulations governing disability plans’ claims review procedures apply to claims that predate the 2018 changes to the regulations. The decision also serves as a reminder for plan administrators to review their claims review procedures to ensure compliance with
Update in ERISA Litigation Involving Breaches of Fiduciary Duty Claims
Several appellate courts over the past year have applied Supreme Court precedent to determine whether complaints properly allege a breach of fiduciary duty under ERISA to warrant relief. Trends useful for employers defending such lawsuits have emerged.
Lawsuits against employers offering retirement benefit plans have been on
First Circuit Creates New Fiduciary Duty Under ERISA for Insurers Accepting Group Premiums from Employers
First Circuit held that an insurer has a fiduciary duty under ERISA to verify individual employee eligibility for group benefit plan coverage at or near the time of enrollment. Insurers can shift the duty of eligibility verification to employers through the plan’s language.
DOL Issues Final Rule for ERISA Fiduciaries Considering Socially Conscious Investments
Employers offering 401(k) and similar retirement plans should familiarize themselves with a new rule published by the Employee Benefits Security Administration of the U.S. Department of Labor, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, which takes effect on January 30, 2023.
December 27, 2022, Deadline for Mandatory Rx Data Collection Reporting
As group health plan sponsors, employers are responsible for ensuring compliance with the prescription drug data collection (RxDC) reporting requirements added to ERISA by the Consolidated Appropriations Act of 2021 (CAA). Under ERISA section 725, enforced by the US Department of Labor (DOL), group health plans (not account-based plans, e.g.,
Court Finds No ERISA Liability for Plan Provider Who Delivered Self-Interested Rollover Advice
A New York federal court recently held that a service provider for employer-sponsored retirement plans was not liable as a fiduciary under the Employee Retirement Income Security Act (“ERISA”) when it used participant information to encourage certain plan participants to roll over assets into its more expensive managed account
Failure to Identify Sound Comparisons Sinks ERISA Fee, Investment Claims in Eighth Circuit
Plaintiffs must plead a “sound basis for comparison—a meaningful benchmark” — to sustain their claims of imprudent investment and excessive fee against a 401(k) plan, the federal appeals court in St. Louis has held, dismissing a class action lawsuit for breached of fiduciary duties under ERISA. Matousek v. MidAmerican Energy Co., No. 21-2749 (8th Cir. Oct. 12, 2022).
Novel ERISA Preemption Questions Presented by U.S. Supreme Court’s Dobbs Decision
The U.S. Supreme Court’s opinion in Dobbs v. Jackson Women’s Health Organization, No. 19-1392 (June 24, 2022), overruling Roe v. Wade and Planned Parenthood v. Casey, has far-reaching consequences across many areas. This special report examines the potential impact Dobbs will have on employee benefits litigation.
Congress Considers Banning Discretionary Clauses in ERISA Plans
On May 12, 2022, the “Employee and Retiree Access to Justice Act” was introduced in the House of Representatives by Mark DeSaulnier (D-CA). Senator Tina Smith (D-MN) introduced a companion bill in the Senate. The bill seeks to ban arbitration and discretionary clauses in employer-sponsored benefit plans governed by