The wave of Employee Retirement Income Security Act (ERISA) litigation continues to surge as numerous major corporations face allegations of breaching fiduciary duties concerning employee benefit plans. Recently, Crane Co., among others such as UnitedHealth and Northrop Grumman, was accused in a class action of improperly utilizing over $11.6 million from an employee pension plan. The lawsuit, filed in federal courts like those in Connecticut and the Eastern District of Pennsylvania, is part of a broader trend reported on Law.com Radar, which noted a 162% increase in ERISA class actions against Fortune 500 companies in May.
These allegations focus primarily on companies reducing their contributions to pension plans, impacting thousands of beneficiaries. A recent U.S. Supreme Court decision in Cunningham v. Cornell University clarified the legal landscape by eliminating the need for plaintiffs to address exemptions in their initial claims, which some argue has simplified the filing process for these lawsuits. Defense lawyers have expressed concerns that this decision could lead to an influx of similar actions.
Crane Co. has not responded to requests for comments regarding the allegations that the company’s actions caused plan participants to bear unnecessary expenses while benefiting the company itself. Legal representation for the plaintiffs includes attorneys from Cowdery, Murphy & Healy, and Chirinos Law Firm.
For further details, refer to the detailed coverage via Law.com.