Benefits

November 20, 2023
Colo. Says 11th Amendment Shields It From Teva EpiPen Suit

Colorado has asked a federal court to toss Teva Pharmaceuticals' lawsuit alleging the state's EpiPen affordability program violates the U.S. Constitution's takings clause, arguing the 11th Amendment shields the state attorney general from such complaints.
November 20, 2023
Puerto Rico Deal Should Nix Pension Suits, 1st Circ. Told

UBS Financial Services told the First Circuit on Monday that public pensioners in Puerto Rico can't press derivative claims that the bank illegally underwrote $3 billion in bonds because the island's restructuring deal transferred the rights to those claims to a committee for the benefit of other creditors.
November 20, 2023
6th Circ. Says Court Overreached In IRS Benefit Guidance Suit

A Michigan federal court erred when it vacated IRS guidance that required disclosure of certain potentially abusive employee benefit plans across the country, the Sixth Circuit ruled Monday, saying the agency's refund of tax penalties to a construction company should've ended the suit.
November 20, 2023
Wave Of ERISA Suits Over BlackRock Funds Hit Hurdles

A recent crop of Employee Retirement Income Security Act suits from ex-workers challenging the decision to retain certain BlackRock investment options in their 401(k)s have stumbled in federal court.
November 20, 2023
UAW Members Ratify Contracts At Big 3 Automakers

United Auto Workers members working at General Motors, Stellantis and Ford ratified new five-year contracts that boost salaries by at least 33%, with some of the lowest-paid workers receiving raises of up to 160%, the union announced Monday.
November 20, 2023
Catching Up With Delaware's Chancery Court

Lawsuits that went nowhere got pretty expensive in Delaware's Court of Chancery last week, which saw the award of a multimillion-dollar "mootness" fee and a settlement of litigation that closed a $720 million deal. New cases involved Walt Disney, Real Life, Zendesk and animal health company Covetrus Inc.
November 20, 2023
Yale Hospital Workers Present $1M Deal In Savings-Fees Suit

The class of Yale-New Haven Hospital Inc. workers who accused their employer of letting its $1.66 billion tax-sheltered annuity plan pay excessive fees at the cost of their retirement savings has asked a Connecticut federal judge to approve a $1 million settlement.
November 20, 2023
Pest Control Co. Reaches $4M Deal To End 401(k) Suit

Former employees of a pest control company told a Georgia federal court they reached a nearly $4 million deal to end their proposed class action accusing the company of stacking their 401(k) with poorly performing investments and saddling participants with excessive administrative expenses.
November 20, 2023
DuPont, Corteva Workers Win Class Status In ERISA Suit

A Pennsylvania federal judge certified two classes of workers in a suit alleging chemical companies DuPont and Corteva illegally backed out of benefit promises following a merger, ruling that there are questions that are best resolved collectively.
November 17, 2023
Justices Asked To Revive Rabobank Price-Fixing Claims

Chicken buyers that have accused Rabobank of helping orchestrate an industrywide price-fixing scheme want the U.S. Supreme Court to step in and declare that the Seventh Circuit messed up by declaring that a lower court had effectively granted the bank summary judgment by approving a motion to dismiss.
November 17, 2023
Judge Won't Delay Ruling If States Can Join Abortion Pill Suit

A Texas federal judge told the government to make its argument about why Missouri, Kansas and Idaho shouldn't intervene in a lawsuit over various rulings about the abortion drug mifepristone, saying that there's no need to wait for the U.S. Supreme Court to decide if it will review the case.
November 17, 2023
AmerisourceBergen Escapes Investor Drug-Dregs Suit In Del.

Delaware's Court of Chancery on Friday tossed shareholder claims that AmerisourceBergen Corp. directors failed to curtail a division's illegal repackaging of cancer drugs, finding a single independent board member's investigation into the shareholder allegations "adequate" and his resulting recommendation to dismiss the case "reasonable."
November 17, 2023
Chancery Refuses Toss Of Biotech Firm Share Award Suit

Unjust enrichment and fiduciary breach claims against six directors or officers of biotech venture Northwest Biotherapeutics moved toward trial late Friday after a Delaware vice chancellor refused to dismiss claims that they failed to disclose real motives for dealing themselves more than $40 million in stock awards.
November 17, 2023
10th Circ. Skeptical Of Amazon's Holiday Pay Math

A Tenth Circuit panel expressed doubts on Friday about Amazon's contention that Colorado wage law does not require holiday pay to be part of overtime calculations, pointing out that state regulations say all compensation must be accounted for in overtime pay.
November 17, 2023
Centene Board Got No Red Flags On Pricing, Del. Court Told

A stockholder suit accusing Centene Corp. directors of failing to curtail Medicaid fraud fails to show a majority of the board knew about the company's alleged pricing problem or that they consciously disregarded any red flags, an attorney for the directors told Delaware's Court of Chancery Friday.
November 17, 2023
L3Harris Cites 2nd Circ. Ruling To Aid Bid To Win 401(k) Suit

L3Harris Technologies Inc. told a Florida federal court that a Second Circuit decision this week bolsters its bid for a win in a class action brought by ex-workers who say the defense contractor's 401(k) retirement plans were too expensive.
November 17, 2023
Feds Denied Stay In Challenge To Trans Health Coverage

A North Dakota federal judge denied federal agencies' motion to pause a business group's suit seeking to block the government from requiring Christian employers and health care providers to cover gender transition surgery, finding Friday that the agencies' progress toward issuing related regulations didn't justify a halt in proceedings.
November 17, 2023
GAO Says DOL Benefits Arm Lacks Strong Resource Planning

The U.S. Department of Labor's employee benefits division needs to implement a clearer process for reallocating resources as responsibilities for the agency increase while funding and staffing levels shrink, according to a report released by the Government Accountability Office.
November 17, 2023
UpHealth To Sell Telehealth Biz To GTCR For $180M In Ch. 11

The parent company of bankrupt telehealth company UpHealth Holdings Inc. has inked a deal to sell the debtor's nonbankrupt sister subsidiary Cloudbreak Health LLC to private equity firm GTCR for $180 million, the debtor told a Delaware bankruptcy judge Friday.
November 17, 2023
Mass. Ex-State Sen. Accused Of COVID Unemployment Fraud

A former Massachusetts state senator and unsuccessful U.S. congressional candidate was arrested Friday on allegations that he fraudulently claimed pandemic-related unemployment benefits while working as a consultant and failed to report income from that job to the IRS, according to the U.S. Attorney's Office for the District of Massachusetts.
November 17, 2023
Oracle Tells Vice Chancellor $5M Moot Fee Unjustified

An attorney for Oracle urged a Delaware vice chancellor Friday to resist stockholder calls to award a $5 million mootness fee, which he said neither mooted nor resolved anything in a years-long, ultimately dismissed suit targeting the company's $9.3 billion deal for Netsuite.
November 16, 2023
Conn. Judge Consolidates $1.1M Ryobi Battery Fire Claims

Agreeing that the cases involved similar issues of law and fact, a Connecticut federal judge has granted joint requests to consolidate three lawsuits alleging that defective Ryobi power tool batteries caused a fire that led to at least $1.1 million in losses.
November 16, 2023
Covetrus Investors Say CD&R Took Advantage In $4B Merger

Two pension fund stockholders of animal health company Covetrus Inc. have sued the company's CEO and directors in Delaware's Court of Chancery, alleging that private equity firm and major shareholder Clayton Dubilier & Rice LLC was given unfair advantages when it bought Covetrus in a $21-per-share takeover with TPG Capital.
November 16, 2023
PBGC Finances Flush, Agency Says In Annual Report

The once-troubled Pension Benefit Guaranty Corp., the federal government's insurer of private-sector pension plans, boasted an end-of-fiscal year surplus of more than $46 million, the agency said.
November 16, 2023
Credit Suisse Can't Ax Adviser's $1.3M Deferred Comp. Win

A New York federal judge backed a $1.3 million arbitration award Thursday granted to a former Credit Suisse adviser who said he was stiffed on a deferred compensation package after the investment banking company shuttered one of its units, ruling the arbitration panel didn't overstep its authority.

Expert Analysis

How To Protect Atty-Client Privilege While Using Generative AI

When using generative artificial intelligence tools, attorneys should consider several safeguards to avoid breaches or complications in attorney-client privilege, say Antonious Sadek and Christopher Campbell at DLA Piper.
How New Lawyers Can Leverage Feedback For Growth

Embracing constructive criticism as a tool for success can help new lawyers accelerate their professional growth and law firms build a culture of continuous improvement, says Katie Aldrich at Fringe Professional Development.
Corporate Compliance Lessons From FirstEnergy Scandal

Fallout from a massive bribery scheme involving Ohio electric utility FirstEnergy and state officeholders — including the recent sentencing of two defendants — has critical corporate governance takeaways for companies and individuals seeking to influence government policymaking, say attorneys at Wilson Sonsini.
Asset Manager Considerations For Soliciting Calif. Pensions

With California public pension and retirement plans representing close to $1 trillion in assets, managers must understand the lobbying laws that may be applicable to soliciting investments from the state's plans, say Chelsea Childs and Catherine Skulan at Ropes & Gray.
Twitter Legal Fees Suit Offers Crash Course In Billing Ethics

X Corp.'s suit alleging that Wachtell grossly inflated its fees in the final days of Elon Musk’s Twitter acquisition provides a case study in how firms should protect their reputations by hewing to ethical billing practices and the high standards for professional conduct that govern attorney-client relationships, says Lourdes Fuentes at Karta Legal.
Why It's Time To Regulate Plan Data As An Asset

With cyberattacks on the rise and the availability of artificial intelligence technology to the public, now is the time for the U.S. Department of Labor to regulate plan data as a plan asset to help protect participants from cybertheft and misuse, say attorneys at Michael Best.
ABA's Money-Laundering Resolution Is A Balancing Act

While the American Bar Association’s recently passed resolution recognizes a lawyer's duty to discontinue representation that could facilitate money laundering and other fraudulent activity, it preserves, at least for now, the delicate balance of judicial, state-based regulation of the legal profession and the sanctity of the attorney-client relationship, say attorneys at Ballard Spahr.
Law Firm Professional Development Steps To Thrive In AI Era

As generative artificial intelligence tools rapidly evolve, professional development leaders are instrumental in preparing law firms for the paradigm shifts ahead, and should consider three strategies to help empower legal talent with the skills required to succeed in an increasingly complex technological landscape, say Steve Gluckman and Anusia Gillespie at SkillBurst Interactive.
Opinion

9th Circ.'s Latest UBH Ruling Ignores Case's Core Issue

The Ninth Circuit’s recent decision to vacate its earlier opinion in Wit v. United Behavioral Health frustratingly disregards the case’s key issue of benefits coverage for mental health treatment, and illogically elevates an insurer's discretionary authority over the medically necessary needs of patients, says Mark DeBofsky at DeBofsky Law.
The Basics Of Being A Knowledge Management Attorney

Excerpt from Practical Guidance

Michael Lehet at Ogletree Deakins discusses the role of knowledge management attorneys at law firms, the common tasks they perform and practical tips for lawyers who may be considering becoming one.
$735M Tesla Settlement Drives Home Lessons For Boards

As one of the largest settlements of its kind, the recent $735 million deal between Tesla and 11 nonemployee directors highlights the increased scrutiny placed on compensation practices and director independence, and provides further caution to members of boards and their compensation committees, say attorneys at Cleary.
To Hire And Keep Top Talent, Think Beyond Compensation

Firms seeking to appeal to sophisticated clients and top-level partners should promote mentorship, ensure that attorneys from diverse backgrounds feel valued, and clarify policies about at-home work, says Patrick Moya at Quaero Group.
2nd Circ. Goldman Ruling May Hinder Securities Classes

The Second Circuit's recent Arkansas Teacher Retirement System v. Goldman Sachs decision, decertifying a class of investors and seemingly resolving a decadelong dispute, makes it substantially more difficult for plaintiffs to certify securities classes based on generic misstatements — a significant win for the defense bar, say attorneys at Willkie.
Perspectives

More States Should Join Effort To Close Legal Services Gap

Colorado is the most recent state to allow other types of legal providers, not just attorneys, to offer specific services in certain circumstances — and more states should rethink the century-old assumptions that shape our current regulatory rules, say Natalie Anne Knowlton and Janet Drobinske at the University of Denver.
Opinion

10th Circ. Remand Of ERISA Claims To Insurer Is Problematic

The Tenth Circuit recently gave the defendant another bite at the apple in David P. v. United Healthcare by remanding Employee Retirement Income Security Act claims for reprocessing, but the statute lacks any provision authorizing remands of ERISA cases, says Mark DeBofsky at DeBofsky Law.