Schnader Harrison Segal & Lewis LLP has agreed to a $675,000 settlement to resolve a proposed class action alleging the firm misused retirement contributions from non-equity partners to support its operations during financial difficulties. The settlement motion was filed on August 12, 2025, in the U.S. District Court for the Eastern District of Pennsylvania. The…
The question of whether employers are willing to diversify 401(k) plans with cryptocurrency investments is gaining traction within corporate financial circles. As traditional investment vehicles face increased scrutiny and the digital asset market grows, companies are evaluating the potential benefits and risks associated with integrating cryptocurrency into retirement portfolios. Recent discussions have highlighted the innovative…
The recent ruling in the case involving Cornell University has generated significant implications for plaintiffs navigating Employee Retirement Income Security Act (ERISA) litigation. The judgment, which emerged from the Second Circuit, underscores new challenges plaintiffs may face when alleging breaches of fiduciary duty related to retirement plan management. Central to the Cornell ruling was the…
The Second Circuit Court has opted not to overturn a previous ruling subjecting Morgan Stanley’s deferred compensation plans to the Employee Retirement Income Security Act (ERISA). Morgan Stanley had contended that U.S. District Judge Paul Gardephe improperly addressed a key substantive issue during the review of a request to arbitrate a case concerning a group…
HP Inc. has received backing in its ongoing appeal before the Ninth Circuit concerning the management of forfeited funds within its 401(k) plan. A nonprofit law firm has filed an amicus brief supporting HP’s position, asserting that the company’s practices align with legal standards. The dispute centers on HP’s allocation of forfeited employer contributions—funds from…
Recent legal developments have seen a series of class action lawsuits challenging how employers utilize forfeited funds within 401(k) plans. These cases primarily focus on whether using forfeitures to offset future employer contributions violates the Employee Retirement Income Security Act (ERISA). Courts have increasingly ruled in favor of employers, affirming the legality of this practice….
Barnes & Thornburg has made a significant addition to its labor and employment department with the appointment of Paul Wilhelm as a partner, stationed in the firm’s Grand Rapids and Ann Arbor offices in Michigan. This development underscores the firm’s ambition to enhance its capabilities in employment law by bringing on a highly skilled litigator…
The Supreme Court recently added seven new cases to its docket for the 2025-26 term, spanning topics from campaign-finance regulation to procedural deadlines in court case transfers. The orders list from June 26 outlines these additions, showcasing a diverse array of legal inquiries. Among these cases, National Republican Senatorial Committee v. Federal Election Commission revisits…
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….
In a strategic move, Eversheds Sutherland has announced the addition of David Kaleda as a partner in its employee benefits team located in Washington, D.C. This appointment underscores the firm’s commitment to expanding its expertise in financial services and insurance sectors, particularly in areas governed by the Employee Retirement Income Security Act (ERISA). The firm’s…
Nixon Peabody LLP has expanded its employee benefits and executive compensation practice by appointing Mark Stember as a partner in their Washington office. Announced Tuesday, this strategic hire aligns with the firm’s ongoing efforts to bolster its expertise in managing complex employee benefit schemes. Stember comes to Nixon Peabody with a robust background in counseling…
Mayer Brown has announced that Rick Nowak has rejoined its Chicago office as a partner in the litigation and dispute resolution practice, specifically focusing on Employee Retirement Income Security Act (ERISA) litigation. This strategic move underlines the firm’s commitment to strengthening its profile in this specialized field. Nowak’s return marks a significant addition to Mayer…
Following the successful negotiation of a $69 million settlement with UnitedHealth Group Inc. over concerns related to the Wells Fargo & Co. target date funds in its 401(k) plan, the attorneys who spearheaded the case are now requesting $23 million in legal fees. This represents a significant one-third of the total settlement amount. In addition…
Google has enlisted the services of law firm Paul Hastings to represent it in an Employment Retirement Income Security Act (ERISA) lawsuit currently pending in the District of Connecticut. The case revolves around allegations of discrimination linked to the termination of a Google employee diagnosed with stage 4 colon cancer. The plaintiff, Peter Martin, claims…
An Indiana federal judge has sanctioned a Texas lawyer $6,000 for submitting briefs in an ERISA case that contained incorrect citations generated by artificial intelligence. The penalty, directed at the individual attorney, significantly reduced the $15,000 originally suggested by a magistrate judge. This disciplinary action highlights growing judicial scrutiny over the use of emerging technology…
Clifford Chance has announced that Reuven Falik has joined the firm as a partner in its US tax, pensions, and employment group. Falik’s addition to the team marks a strategic expansion for Clifford Chance in the executive compensation and employee benefits legal sector. Falik brings a wealth of experience advising clients on complex issues related…
In a development that may have significant ramifications for future litigation surrounding 401(k) plans, a jury has rendered a $38.8 million verdict for participants in a 401(k) plan administered by Pentegra Services. This outcome is noteworthy due to its rarity; federal benefits law cases governed by the Employee Retirement Income Security Act of 1974 (ERISA)…
In a recent decision with potential implications for employee benefit plans across the United States, the Supreme Court unanimously held in Cunningham v. Cornell University that plaintiffs alleging a prohibited transaction under the Employee Retirement Income Security Act’s (ERISA) Section 406(a) bear no burden to demonstrate that the transaction does not fall within an exemption…
The recent unanimous decision by the US Supreme Court in Cunningham v. Cornell University marks a significant shift in the litigation landscape for fiduciaries and plan sponsors under the Employee Retirement Income Security Act (ERISA). The ruling affects all ERISA-governed plans, impacting the procedural obligations of fiduciaries regarding third-party transactions. One of the central implications…
Recently, the Supreme Court provided clarification on pleading standards under the Employee Retirement Income Security Act (ERISA), resolving a technical query that had perplexed lower courts. The case, Cunningham v. Cornell University, although not one of the most notable decisions of the term, has significance for the way courts will handle ERISA litigation going forward….
Carlton Fields Adds Carol McClarnon Carlton Fields has announced the addition of Carol McClarnon as a shareholder within its financial services regulatory practice in Washington. McClarnon brings substantial experience in representing retirement plan service providers and plan sponsors before the Labor Department and Internal Revenue Service. Her work primarily addresses compliance with Title I of…
Health insurance companies are currently facing a surge in ERISA litigation with a series of lawsuits newly filed in federal courts across Texas. Prominent insurers such as UnitedHealthcare, Lincoln National, and Life Insurance Co. of North America have been targeted. The legal actions accuse these firms of wrongfully denying or canceling disability benefits and other…
Sarah Humble has now joined Ogletree Deakins as a shareholder, enhancing the firm’s Phoenix office. Renowned for its strong practice in employment law, Ogletree Deakins has announced this strategic hiring to bolster its capabilities in civil litigation. Sarah Humble’s arrival is indicative of the firm’s commitment to deepen its talent pool, focused on navigating complex…
For employers managing health and welfare plans, late enrollment requests from employees can introduce significant complexities, particularly regarding tax implications and compliance with established plan documents. These plans typically require employees to elect coverage by a predetermined deadline, and while some exceptions exist for specific life events or before the commencement of the plan year,…
In a recent development in the legal landscape concerning life insurance disputes, Hartford Life & Accident Insurance Co. has been ordered to pay approximately $200,000 in attorneys’ fees and costs. This decision follows a confidential settlement agreement in a lawsuit stemming from the passing of a Long Island art teacher. The case, which was heard…