ERISA

Navigating Recordkeeper Security Guarantees: A Fiduciary Dilemma for Retirement Plan Sponsors Under ERISA

Pieter Gunst04 mins

In the rapidly evolving landscape of retirement plan management, recordkeeper security guarantees are emerging as a potential source of liability for plan sponsors. As cyber threats become increasingly sophisticated, recordkeepers offer these guarantees to protect client data. However, such offerings might pose significant risks, particularly concerning fiduciary duties under the Employee Retirement Income Security Act…

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Legal Battle Over Private Equity Inclusion in 401(k) Plans Poses Major Implications for Retirement Savings

Pieter Gunst03 mins

The landscape of investment options within 401(k) plans is under scrutiny as new legal battles emerge over the inclusion of private equity assets. A prominent lawyer is championing a fight that could reshape the future of retirement savings. This battle highlights the complex intersection of employee benefits law and fiduciary duties, raising questions about the…

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American Airlines’ ESG 401(k) Case Highlights Growing Legal Tensions Over Fiduciary Duties

Pieter Gunst03 mins

In a noteworthy legal development, the litigation surrounding American Airlines’ 401(k) plan and its inclusion of Environmental, Social, and Governance (ESG) investments has culminated in a $4.6 million fee for the involved attorneys. This fee emerges from a settlement in a case scrutinizing the fiduciary responsibility of the airline concerning its employees’ retirement savings and…

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Increased ERISA Scrutiny Mandates Enhanced Fiduciary Documentation and Compliance Practices

Pieter Gunst04 mins

As courts intensify their examination of fiduciary processes under the Employee Retirement Income Security Act (ERISA), legal professionals must brace for increased scrutiny concerning how retirement plans are managed. Recent decisions underscore the necessity for fiduciaries to meticulously document their decision-making processes and maintain compliance with ERISA standards. The stakes have been raised following several…

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Cedars-Sinai Settles $2.97 Million ERISA Lawsuit Over Retirement Plan Management

Pieter Gunst03 mins

Cedars-Sinai Medical Center has received judicial approval for a $2.97 million settlement concerning allegations related to its retirement plan management. The accord resolves claims that the medical center failed in its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by engaging in imprudent practices surrounding the administration of 403(b) plans offered to its…

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Major Law Firms Face Lawsuit Over Alleged Misleading Securities Advice and Compliance Failures

Pieter Gunst03 mins

A recent lawsuit filed in the U.S. District Court for the Western District of Missouri alleges that prominent law firms Husch Blackwell, Morrison & Foerster, and Nelson Mullins provided misleading advice to a venture capital firm regarding securities law compliance. The suit claims that the firms’ guidance led to significant financial losses for the plaintiff….

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Supreme Court Weighs Modernizing Actuarial Assumptions in Multiemployer Pension Plans Case

Pieter Gunst03 mins

During Tuesday’s proceedings in the case of M&K Employee Solutions v Trustees of the IAM National Pension Fund, the U.S. Supreme Court justices exhibited skepticism about mandating actuaries to adhere to outdated assumptions for assessing liabilities in multiemployer pension plans. This case involves multiemployer pension plans, which contrast significantly with the more common defined-contribution plans…

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Supreme Court Breaks Relist Logjam, Advances Key Cases on Pesticides, ERISA, and Privacy

Pieter Gunst04 mins

The U.S. Supreme Court’s recent session saw significant developments as the court issued rulings on several long-pending cases, effectively resolving the persistent and complex hold known as the “relist logjam.” As reported by SCOTUSblog, the Court granted certiorari to four notable cases, all one-time relists, in its final conference of the October 2025-26 term. Among…

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Federal Court Challenges Arbitration Clauses in ESOP Valuation Dispute, Setting Potential Precedent for ERISA Cases

Pieter Gunst03 mins

In a pivotal decision, the Eleventh Circuit Court of Appeals has affirmed a lower court’s ruling, refusing to enforce an individual arbitration clause in a lawsuit concerning the alleged undervaluation of shares within a legal technology company’s employee stock ownership plan (ESOP). This judgment, highlighted in Law360, underscores the judiciary’s scrutiny over arbitration provisions that…

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Wells Fargo Secures Preliminary Approval for $84 Million Settlement in ERISA Breach Lawsuit

Pieter Gunst03 mins

In a significant legal development, Wells Fargo has secured preliminary approval for an $84 million settlement addressing allegations related to its employee stock ownership plan. The lawsuit accused the financial institution of breaching its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by investing participants’ retirement savings in the bank’s own underperforming stock….

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“Concerns Arise Over ERISA Litigation Practices: Balancing Employee Rights and Corporate Protection”

Pieter Gunst03 mins

Recent discussions in legal and political circles have placed the spotlight on concerns surrounding the Employee Retirement Income Security Act (ERISA) and its litigation processes. A group of House Republicans and legal experts has raised alarms regarding what they perceive as potential abuse of ERISA-related litigation by plaintiffs. They argue that some lawsuits may exploit…

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Husch Blackwell LLP Faces ERISA Compliance Challenge from Former Partner in Retirement Contributions Dispute

Pieter Gunst03 mins

In a recent legal skirmish, Husch Blackwell LLP has responded assertively to accusations leveled by a former partner, who alleged that the firm violated the Employee Retirement Income Security Act (ERISA). The legal contention arose when the ex-partner claimed improper withholding of retirement contributions, mischaracterizing these as participant inputs rather than identifying them correctly as…

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U.S. Department of Labor Seeks Dismissal of Appeals in Fiduciary Rule Litigation, Signaling Potential Regulatory Shifts

Pieter Gunst03 mins

The U.S. Department of Labor has submitted a motion to the Fifth Circuit to dismiss appeals related to Biden-era investment advice regulations, which had broadened the definition of a fiduciary under the Employee Retirement Income Security Act (ERISA). These regulations, which sought to ensure greater fiduciary accountability, were initially blocked by two Texas courts in…

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Husch Blackwell Faces Legal Scrutiny Over 401(k) Management in Ex-Partner’s Lawsuit

Pieter Gunst03 mins

Husch Blackwell LLP is currently engaged in a legal defense concerning its 401(k) plan management after a lawsuit was filed by former partner Jerome A. McCluskey. The ex-partner alleges that the firm mishandled its retirement plan offerings, leading to excessive fees and financial mismanagement. The firm, however, maintains that its 401(k) processes comply with all…

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Private Equity’s 401(k) Expansion Spurs Rising Demand for Top-Tier Legal Expertise

Pieter Gunst04 mins

The recent foray of private equity firms into the lucrative realm of 401(k) plans is set to create an unexpected financial beneficiary: high-earning lawyers. These legal professionals are positioned to profit significantly as private equity expands its footprint in the retirement savings industry, translating into more complex legal needs and thus, increased demand for specialized…

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Wells Fargo’s $84 Million ERISA Settlement Sheds Light on 401(k) Management Accountability

Pieter Gunst04 mins

Wells Fargo has agreed to an $84 million settlement to resolve claims in an Employee Retirement Income Security Act (ERISA) class action lawsuit, marking a significant development in the bank’s legal journey. This suit alleged that the company mishandled its employee 401(k) plan by retaining high-cost, poorly performing investment options, negatively impacting employee retirement savings….

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European Court of Human Rights Orders Russia to Pay Georgia €253 Million for Border Violations

Pieter Gunst04 mins

The European Court of Human Rights (ECtHR) recently mandated that Russia compensate Georgia over 253 million euros, attributable to human rights violations stemming from the Russian “borderisation” process in Abkhazia and South Ossetia, regions in conflict with Georgia. This development is part of a protracted legal struggle over accountability for actions contravening international human rights…

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Simpson Thacher Navigates Emerging Role of Private Equity in 401(k) Plans

Pieter Gunst03 mins

Simpson Thacher & Bartlett LLP is taking steps to navigate the nascent field of private equity investments within 401(k) retirement plans. Traditionally, private equity has been largely separated from individual retirement accounts, but shifts in financial regulations are paving the way for new opportunities. Part of this shift can be attributed to guidance from the…

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Cigna Agrees to $5.7 Million Settlement Over “Ghost Network” Allegations in Provider Directories

Pieter Gunst04 mins

Cigna Health and Life Insurance Company has agreed to a $5.7 million settlement to resolve a class-action lawsuit alleging the insurer misrepresented out-of-network providers as in-network within its directories. This case underscores the growing scrutiny over the accuracy of insurer provider directories, often referred to as “ghost networks,” which can mislead patients about available in-network…

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American Airlines 401(k) Case Highlights Emerging Legal Challenges in ESG Investments

Pieter Gunst03 mins

The recent decision involving American Airlines and its 401(k) plan may pave the way for an increase in legal challenges related to environmental, social, and governance (ESG) investment options within retirement plans. The case, dismissed by the court, centered on allegations that the company violated its fiduciary duties by offering an ESG fund allegedly linked…

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Adapting to Success: How Rachel Faye Smith’s Flexible Approach Transformed Her Legal Career

Pieter Gunst04 mins

Rachel Faye Smith, a distinguished figure in the legal profession and the current Practice Group Chair at Morrison Foerster, offers a refreshing perspective on career development, particularly for those navigating the intricacies of legal practice. Speaking candidly about her unconventional career path, Smith emphasizes the importance of maintaining a broad view and remaining receptive to…

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Husch Blackwell Faces Class Action Lawsuit Over Alleged Misuse of Employee 401(k) Contributions

Pieter Gunst03 mins

On September 16, 2025, a class action lawsuit was filed in the U.S. District Court for the Western District of Missouri against Husch Blackwell LLP and its Executive Board members. The suit alleges that the firm violated the Employee Retirement Income Security Act (ERISA) by delaying the transfer of employees’ 401(k) contributions to the retirement…

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