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Mealey's ERISA

  • October 13, 2025

    $332M Deal To End Residual Annuities Class Action Wins Preliminary Approval

    NEW YORK — A long-running Employee Retirement Income Security Act lawsuit over residual annuities would be resolved under a proposed $332 million settlement that a New York federal judge has granted preliminary approval.

  • October 10, 2025

    After Fees Award, LTD Insurer Drops Appeal Of Ruling That Doctor Is Due Benefits

    PHILADELPHIA — Weeks after the plaintiff in a long-term disability (LTD) benefits case was awarded reduced attorney fees of $117,297.50 by the trial court, the Third Circuit U.S. Court of Appeals dismissed the insurer’s appeal pursuant to a joint stipulation.

  • October 09, 2025

    Judge Upholds Ending Of LTD Benefits, Rules That Emails Were Privileged

    MILWAUKEE — Concluding in part that the plaintiff didn’t show that the fiduciary exception to attorney-client privilege applies, a Wisconsin federal judge upheld termination of long-term disability (LTD) benefits in a case that involved disputes regarding the duties of the claimant’s “regular occupation” as a customer service representative who worked remotely.

  • October 09, 2025

    Pa. Federal Magistrate Recommends Dismissing Pension Risk Transfer Case

    PITTSBURGH — Agreeing with two of the five recent rulings in similar Employee Retirement Income Security Act putative class actions and citing Thole v. U.S. Bank N.A., a Pennsylvania federal magistrate judge recommended dismissing a pension risk transfer (PRT) challenge for lack of standing on the grounds that none of their three claimed injuries pass muster.

  • October 08, 2025

    Judge Tentatively Orders Sanctions For Disclosures To U.S. Labor Department

    OAKLAND, Calif. — Days after granting the plaintiffs’ third motion for class certification in an Employee Retirement Income Security Act suit over alleged underpayment for out-of-network behavioral health treatment, a California federal judge issued a tentative order on Oct. 7 for a law firm representing the plaintiffs to pay $50,000 for disclosures to the U.S. Department of Labor (DOL) that she found constituted “a knowing and intentional breach of” a stipulated protective order in the case.

  • October 08, 2025

    New York Federal Judge Upholds Denial Of Attorney’s Claim For LTD Benefits

    NEW YORK — Saying that the determination at issue was “based on the objective evidence of doctors and psychologists,” a New York federal judge upheld denial of long-term disability (LTD) benefits for a corporate finance attorney who claimed that she became unable to do her job after her vehicle was rear-ended at a traffic light.

  • October 08, 2025

    Disability Case Involving Brain Injury Is Remanded For Vocational Analysis

    SAN FRANCISCO — On de novo review of a case challenging termination of long-term disability (LTD) benefits under an any-occupation standard, a California federal magistrate judge found that “the medical evidence does not establish that Plaintiff is unable to enter the workforce” but that vocational evidence is needed to determine whether the claimant is disabled under the plan terms.

  • October 07, 2025

    U.S. High Court Won’t Review 3rd Circuit Ruling On DuPont Pension Trust

    WASHINGTON, D.C. — The U.S. Supreme Court in its Oct. 6 order list denied a pro se petition for review of a nonprecedential Third Circuit U.S. Court of Appeals ruling that the purported single-employer pension plan at issue is not governed by the Employee Retirement Income Security Act.

  • October 06, 2025

    Key ERISA Claims Survive Dismissal In Yet Another Tobacco Surcharge Challenge

    MEMPHIS, Tenn. — The tally of challenges to health plan tobacco surcharges that have at least partly survived dismissal continues to grow, with a Tennessee federal judge letting key claims continue in a putative class action that is part of a recent wave of similar lawsuits.

  • October 06, 2025

    Judge: Retirees In PRT Challenge Have Standing But Didn’t State Claims

    BOSTON — Overruling objections from each party in a putative class action that is part of a wave of challenges to pension risk transfers (PRTs), a Massachusetts federal judge granted dismissal motions upon concluding that the plaintiff retirees narrowly have standing because of allegations that they “received an inferior financial benefit than that to which they were entitled” — but failed to state their claims.

  • October 06, 2025

    Defendants Win Dismissal In 4 More ERISA Cases Over Use Of Forfeitures

    Case law continues to accumulate in the wave of putative Employee Retirement Income Security Act class suits challenging a common use of forfeited nonvested matching retirement contributions, with four recent additions to the majority of rulings granting dismissal motions.

  • October 03, 2025

    Judge Dismisses Case That Challenged ESOP’s Use Of Low-Earning Cash Buffer

    STATESVILLE, N.C. — Declining to adopt the reasoning of a contrary Employee Retirement Income Security Act ruling issued in a different district, a North Carolina federal judge granted dismissal of a putative class action that challenged the use of a cash buffer by an employee stock ownership plan (ESOP).

  • October 03, 2025

    LTD Claimant’s Bid To Supplement Record Under Vega Is Denied

    LAFAYETTE, La. — Rejecting the plaintiff’s reliance on Vega v. Nat'l Life Ins. Servs., a Louisiana federal judge denied her attempt to supplement the record in her suit over termination of long-term disability (LTD) benefits with documents she tried to submit to the insurer months after it had closed the administrative appeal she had filed pro se.

  • October 02, 2025

    ESOP Participant Prevails In Arbitration, Seeks Confirmation Of Award, Fees

    PHOENIX — An employee stock ownership plan (ESOP) participant who filed a putative class complaint but was forced into individual arbitration asked an Arizona federal court on Oct. 1 to confirm an $11,029.50 arbitration award and to confirm an order directing the defendants to pay $2,359,909 in attorney fees incurred during the arbitration proceedings and $132,310.97 in arbitration costs.

  • October 02, 2025

    After Bench Trial, Judge Rules For 401(k) Plan Fiduciaries In Management Dispute

    MEMPHIS, Tenn. — Saying the Employee Retirement Income Security Act “demands prudence, not perfection,” a Tennessee federal judge entered judgment in favor of AutoZone Inc. and related defendants following a bench trial in the class action that was filed over several aspects of their management of a 401(k) plan.

  • October 02, 2025

    Judge Rules For Insurer That Cut Off LTD Benefits Under Any-Occupation Standard

    WILMINGTON, Del. — Upholding termination of long-term disability (LTD) benefits under an any-occupation standard for a claimant who has multiple sclerosis (MS) and chronic inflammatory demyelinating polyradiculoneuropathy (CIDP), a Delaware federal judge said in part that a final determination by independent appeal evaluator IMEDECS is not new evidence.

  • October 02, 2025

    Judge Lets Dismissal Of Claims Against Exec Stand In Stock-Sale Challenge

    BOISE, Idaho — Saying that the U.S. Department of Labor (DOL) didn’t meet “the high burden of showing the clear error necessary for reconsideration,” an Idaho federal judge let stand his dismissal of claims against a former CEO and board chair who sold part of his stock in an allegedly inflated deal that is being challenged under the Employee Retirement Income Security Act.

  • October 01, 2025

    Judgment Without Monetary Relief Wraps ERISA Suit Involving ESG Efforts

    FORT WORTH, Texas — Wrapping up a class action over environmental, social and governance (ESG) considerations and the purported proxy voting activism of nonparty investment management firms, a Texas federal judge issued a Sept. 30 judgment denying monetary damages but awarding “equitable relief to ensure that Defendants and their investment managers act solely for the pecuniary benefit of the Plan and implement compliance measures to ensure fidelity to” Employee Retirement Income Security Act fiduciary standards.

  • September 30, 2025

    New York Federal Judge Deepens Standing Split In Series Of PRT Challenges

    NEW YORK — Days after a different New York federal judge dismissed a similar pension risk transfer (PRT) complaint for lack of standing, a New York federal judge on Sept. 29 largely declined to dismiss a putative class case, ruling that retirees have standing because they sufficiently alleged that the PRT “created a substantial risk that Plaintiffs will not receive their benefits” and “diminished the value of Plaintiffs’ benefits.”

  • September 29, 2025

    9th Circuit Vacates Statutory Penalties Of $765 In ERISA Documents Case

    SAN FRANCISCO — Cross-appeals of an Employee Retirement Income Security Act documents case that resulted in statutory penalties of $765 were resolved against a health plan beneficiary, with the Ninth Circuit U.S. Court of Appeals saying in an unpublished memorandum disposition that Netflix Inc. “disclosed all required documents as soon as administratively practicable ahead of the March 1, 2021, disaster order deadline and did not act in bad faith, especially in light of the COVID-19 pandemic.”

  • September 26, 2025

    Investment Manager’s Bid For Summary Judgment Fails In Proprietary Funds Case

    LAS VEGAS — Denying summary judgment in a class action only as to an investment manager accused of improperly selecting lackluster proprietary funds for a retirement plan, a Nevada federal judge on Sept. 25 reported finding “direct evidence” that the manager “employed unsound methods”; however, the judge also determined that the plan sponsor and fiduciaries escape liability because they “acted prudently in hiring” the manager.

  • September 26, 2025

    $8.25M Class Deal Ends ERISA Recordkeeping Case After Release Adjustments

    BOSTON — Following last-minute adjustments suggested by the U.S. Department of Labor (DOL) and an independent fiduciary, a Massachusetts federal judge on Sept. 25 granted final approval to an $8.25 million class settlement that resolved an Employee Retirement Income Security Act suit over a retirement plan’s allegedly excessive recordkeeping fees.

  • September 25, 2025

    A 2nd Pension Risk Transfer Case Is Dismissed For Lack Of Standing

    ALBANY, N.Y. — Nearly six months after the first two rulings on dismissal motions in a much-watched recent set of putative class actions challenging pension risk transfers (PRTs) that retirees allege increase the possibility that they won’t get all of their promised benefits because of factors including offshore captive reinsurance, a New York federal judge issued the third ruling on Sept. 24, granting dismissal without prejudice for failure “to plausibly allege any injury-in-fact sufficient to establish standing.”

  • September 25, 2025

    Former CEO Wins Retroactive LTD Benefits In Case Involving Occupational Duties

    CHATTANOOGA, Tenn. — Finding in part that the former leader of a software company sufficiently showed “that the important duties of the average CEO include working sixty hours a week or more with frequent travel,” a Tennessee federal judge on Sept. 24 ordered that his long-term disability (LTD) benefits be reinstated retroactively through March 2021.

  • September 25, 2025

    ERISA Complaints Target Health Plans For Offering Allegedly ‘Dominated’ Option

    Two sets of plaintiffs represented by the same counsel have filed similar putative Employee Retirement Income Security Act class complaints against sponsors and administrators of self-funded health plans set up on a preferred provider organization (PPO) basis, alleging in part that they “have breached their fiduciary duty of prudence by assembling a menu of PPO options where there is no financial benefit to selecting” one option.