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Employee Retirement Income Security Act (ERISA) Employee Benefits Corporate Governance

Husch Blackwell LLP

ESOP Fiduciary Duties When Investing in Non-Stock Assets

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On February 6, 2025, a Pennsylvania federal judge gave preliminary approval to a $2.1 million settlement resolving a class action involving the Pride Mobility ESOP. This case is one of six brought so far—and the second to...more

Mintz

Biden Administration's DOL Rule Permitting ESG Investments Survives Legal Challenge

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4 Last week, a federal district judge in the Northern District of Texas upheld a rule promulgated by the Biden Administration's Department of Labor enabling ESG-focused investing. Specifically, the court determined that the...more

Carlton Fields

Expect Focus - Volume I, January 2025

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The Mysterious Boundary Beyond Which “Personal” Relationships Jeopardize a Director’s Independence - In a recent enforcement action, the SEC concluded that the relationship between James Craigie and an officer of Church &...more

Paul Hastings LLP

Federal Court Determines American Airlines, Inc., 401(k) Plan Fiduciaries Breached Their ERISA Fiduciary Duty of Loyalty to...

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On January 10th, the United States District Court for the Northern District of Texas (the court) ruled that American Airlines, Inc. (American) and the American Airlines Employee Benefits Committee (together, the Defendants)...more

A&O Shearman

Texas District Court ESG ruling has broader implications for ERISA plan fiduciaries

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On January 10, 2025, the U.S. District Court for the Northern District of Texas (the “Court”) held, in Spence v. American Airlines, Inc., that American Airlines (“American”) and the American Airlines Employee Benefits...more

A&O Shearman

ESG Investing Takes A Blow In Texas Federal Court

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On January 10, 2025, Judge Reed O’Connor of the United States District Court for the Northern District of Texas ruled, following a four-day bench trial, that an airline breached ERISA fiduciary duties when investing...more

Proskauer - Employee Benefits & Executive...

401(k) Plan Fiduciaries Breached ERISA’s Duty of Loyalty By Allowing ESG Interests To Influence Management Of The Plan

Last week, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas, issued the first-of-its-kind ruling on the merits pertaining to environmental, social, and corporate governance (“ESG”) investing...more

Ropes & Gray LLP

Practical Takeaways from Spence v. American Airlines, Inc. for ERISA Plan Fiduciaries

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On January 10, 2025, Judge Reed O’Connor of the Northern District of Texas issued a much-anticipated ruling in Spence v. American Airlines, Inc., which marks the first time that a federal judge has written an on-the-merits...more

Saul Ewing LLP

Organizing Your Company’s Health and Welfare Plans Part 1: Creating a Framework

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Following the flurry of regulatory guidance and informal comments from officials at the Employee Benefits Security Administration, and other agencies of the Federal government, health and welfare plans should be a primary...more

DarrowEverett LLP

Post-Closing Incentive Structures for Key Management in Private Equity

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If you own or manage a company that a private equity firm is looking to acquire, and you plan to stay on after the closing, you’ll likely need to negotiate two key points: rolling over some or all of your equity and...more

Mintz

Federal Court Rules ESG-Guided Investing of 401(k) Plan Is a Breach of Fiduciary Duty

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Following a bench trial, Judge O'Connor (N.D. Tex.) held that “that Defendants breached their fiduciary duty by failing to loyally act solely in the retirement plan's best financial interests by allowing their corporate...more

Goodwin

Minding the Store: Unanticipated ESG Issues Affecting ERISA Fiduciary Supervision

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A recent summary judgment decision from the U.S. District Court for the Northern District of Texas in an ERISA (Employee Retirement Income Security Act) class action challenging the alleged impact of environmental, social,...more

ArentFox Schiff

Airline 401k Decision Illustrates Continued Takeoff of ESG Litigation

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A Texas federal judge recently permitted an environmental, social, and governance- (ESG) related Employee Retirement Income Security Act (ERISA) case filed by an airline pilot against his employer and its benefits plan to...more

Holland & Hart - The Benefits Dial

Should I Pay Or Should I No(t) Now: Which Expenses Can be Paid with Plan Assets?

One question that often comes up is whether an expense related to an ERISA plan can be paid with plan assets. The decision of whether to use ERISA plan assets to pay an expense is an ERISA fiduciary decision. With the recent...more

Robinson Bradshaw

Tenth Circuit Prohibits Class-Action Waivers in Benefit Plan Documents

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It is no secret that many businesses minimize risk by requiring arbitration of disputes on an individual basis. The exposure created by a single claim pales next to that presented by a class claim, asserted under Rule 23, on...more

Mintz - Employment Viewpoints

Call it a Comeback: The Likely Return of ESG Investing in ERISA Accounts

Environmental, social, and governance (“ESG”) investing has experienced quite the regulatory roller coaster in recent years. In the most recent turn, Democratic Senators Patty Murray (D-Wash.) and Tina Smith (D-Minn.), along...more

Winstead PC

Plan Fiduciaries: You Have No Right to Vote

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On December 11, 2020, the United States Department of Labor (DOL) issued a pre-publication version of its final regulations with respect to proxy voting in plans that are subject to the Employee Retirement Income Security Act...more

Parker Poe Adams & Bernstein LLP

U.S. Labor Department Tells Retirement Plans to Focus on the Money, Not Environmental or Social Issues

The U.S. Department of Labor recently finalized regulations that are likely to limit the use of retirement investments focused on environmental and social issues. On October 30, DOL issued a rule entitled “Financial Factors...more

Mayer Brown Free Writings + Perspectives

The Department of Labor’s ESG-less Final ESG Rule

On October 30, 2020, the U.S. Department of Labor (“DOL”) released its final regulation (“Final Rule”) relating to a fiduciary’s consideration of environmental, social and governance (“ESG”) factors when making investment...more

Latham & Watkins LLP

US Department of Labor Puts ESG Investing on Ice

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In its finalized rule amending ERISA, the DOL makes financial factors paramount in a fiduciary’s responsibility to investors. On October 30, 2020, the US Department of Labor (DOL) published Financial Factors in Selecting...more

Morgan Lewis - ML Benefits

More to Come from Department of Labor on ESG Factors? Executive Order, DOL Document Requests Suggest Yes

A hot topic in the world of money management, including the management of assets in retirement plans, is the consideration of environmental, social, and governance (ESG) factors when evaluating investments....more

Foley & Lardner LLP

All in the Family – Why Controlled Group Rules Matter

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It’s the time of year when we all gather around with our families and loved ones.  It’s also a good time to remember that your company may have its own family.  Forgetting about that family can spell trouble....more

Winstead PC

May Benefits Roundup

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The U.S. Department of Labor’s Fiduciary Rule is Finally Dead or Is It? The U.S. Department of Labor (“DoL”) permitted the Fifth Circuit’s decision overruling the fiduciary rule in its entirety on a nationwide basis due to...more

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