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Fiduciary Duty Settlement

Ropes & Gray LLP

District Court Strikes Down $40 Million Settlement Agreement in Target Date Funds Case Based on Parallel SEC Settlement

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On May 19, 2025, the United States District Court for the Eastern District of Pennsylvania (the “Court”) denied final approval of a $40 million proposed settlement in a major class action lawsuit against The Vanguard Group,...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Holds That Derivative Litigation Settlement Procedural Rules Apply Even In Intra-Shareholder Suits in...

In Norman v. Strateman, No. A170356, 2025 WL 1802786 (Cal. App., 1st Dist., June 20, 2025), the California Court of Appeal held that a settlement of derivative claims reached among all shareholders of a close corporation was...more

Walkers

Key considerations for trustees deciding whether to exercise their power of appointment

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Among a trustee's numerous powers, the exercise of its power of appointment is one it will most often be asked to consider exercising. It is also the power that will come under the most scrutiny from beneficiaries....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

United Health is latest 401(k) forfeiture lawsuit

UnitedHealth Group is the latest big-name employer to get hit with a class action lawsuit over how it handles 401(k) forfeitures. The case, Kotalik et al. v. UnitedHealth Group Inc., accuses the company and its plan...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Northrop Grumman is target for another Schlicter case

If there’s a Mount Rushmore of ERISA class-action litigators, you better believe Jerry Schlichter’s face is carved into it—probably right next to a 408(b)(2) disclosure and a stack of mutual fund fee charts. And once again,...more

Morris, Manning & Martin, LLP

What is an Improper Use of Forfeiture Case Worth? Intuit Settlement Provides Perspective

On Friday, May 16th, plaintiff’s counsel in the Rodriguez v. Intuit Inc. case filed a motion to support a settlement of $1,995,000.  The motion appears to reflect a good compromise between the parties … and as they say, a...more

Carlton Fields

Considerations for Plan Sponsors in the Wake of Cunningham v. Cornell

Carlton Fields on

Excessive fee cases against plans governed by the Employee Retirement Income Security Act (ERISA) have been on the rise for the last decade. ERISA litigation is expanding with novel theories such as forfeiture litigation....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Whole Foods settles class action case

Whole Foods Market has agreed to settle a class-action lawsuit that alleged the company failed to prudently manage the administrative fees of its $1.9 billion 401(k) plan, resulting in millions in losses for employees....more

Ropes & Gray LLP

Plan Sponsors Beware: The U.S. Supreme Court Just Eased Requirements to File ERISA Prohibited Transaction Suits

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Many sponsors and fiduciaries of ERISA retirement plans had been hoping that the U.S. Supreme Court’s opinion in Cunningham v. Cornell University (No. 23-1007) would articulate new pleading standards that would slow the...more

Woodruff Sawyer

Derivative Suit Exposure: More Art Than Science

Woodruff Sawyer on

Derivative suits are a topic of discussion that continues to challenge directors, officers, and insurers alike. The issue is particularly fraught for individual directors and officers because Delaware-incorporated companies...more

Eversheds Sutherland (US) LLP

Supreme Court lowers pleading standard for ERISA prohibited transaction claims

The US Supreme Court issued a unanimous decision on April 17, 2025 that could have a lasting impact on retirement plan litigation. The decision in Cunningham v. Cornell University clarifies that when plaintiffs bring...more

Keating Muething & Klekamp PLL

Benefits Monthly Minute - April 2025

The April Monthly Minute showers readers with some eye-opening case law updates, ranging from a $38.8M jury verdict in a 401(k) fee case, to a pair of cases involving Elevance (f/k/a Anthem) health plan coverage exclusions....more

Littler

The Supreme Court Relieves ERISA Plaintiffs of a Pleading Requirement: What’s Next for ERISA Plan Fiduciaries?

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On April 17, 2025, the U.S. Supreme Court issued a decision that dealt a blow to benefit plan fiduciaries nationwide. The Court unanimously held in Cunningham v. Cornell University that a plaintiff asserting that a plan and...more

Groom Law Group, Chartered

Cunningham v. Cornell: Supreme Court Lowers Bar for ERISA 406(a) Claims

On April 17, 2025, the Supreme Court ruled in Cunningham v. Cornell University that, to state a claim under ERISA section 406(a), plaintiffs need only allege the elements contained in section 406(a). Prior to the Supreme...more

Groom Law Group, Chartered

One Court Permits Tobacco Premium Surcharge Claims to Proceed Beyond the Pleading Stage, While Dispositive Motions Remain Pending...

In fall 2024, plaintiffs filed a wave of putative class action lawsuits against employers challenging wellness programs that impose a health coverage premium surcharge on participants if they do use tobacco or do not complete...more

Morris, Manning & Martin, LLP

From Stable to Shaky: What Bed Bath & Beyond’s Settlement Means for Retirement Plan Sponsors

In February, Bed Bath & Beyond, Inc.’s 401(k) Savings Plan Committee (the “Plan Committee”) agreed to pay $1,950,000 to participants in the Bed Bath & Beyond, Inc. 401(k) Savings Plan (the “Plan”) whose accounts were invested...more

Akerman LLP

Purdue Pharma Foretells a Troubled Future for Bar Orders

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In Harrington v. Purdue Pharma L.P., the Supreme Court held that the Bankruptcy Code does not authorize a bankruptcy court to grant a release and injunction that extinguishes direct claims against nondebtor third parties...more

Morris James LLP

Supreme Court Affirms Chancery Decision of Near-Record $267 Million Fee Award

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In re Dell Techs. Inc. Class V S’holders Litig., No. 349, 2023 (Del. Aug. 14, 2024) - After an appeal of the second-largest fee award in Delaware history, the Delaware Supreme Court ruled that the Court of Chancery had...more

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

Walkers

Jurisdiction Shall we make this exclusive?

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Jurisdiction clauses in trust deeds are critical in determining the forum for resolving disputes. These clauses can be either exclusive, conferring jurisdiction to a specific court, or non-exclusive, allowing for flexibility...more

Vedder Price

SEC Settles Enforcement Proceedings Against Investment Adviser Regarding Alleged Misleading Disclosure Concerning Capital Gains...

Vedder Price on

On January 17, 2025, the SEC announced the settlement of administrative proceedings brought against a registered investment adviser for allegedly making materially misleading statements relating to capital gains distributions...more

Saul Ewing LLP

The Friday Five: Five ERISA Litigation Highlights - February 2025

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This month’s Friday Five covers an appellate ruling on a complicated case raising both state and federal claims, an instance of procedural improprieties in the administrative review process informing the court’s substantive...more

Seward & Kissel LLP

Sack Exchange Part II, Age of Consent and FDIC You Later

Seward & Kissel LLP on

Purdue Pharma and owners to pay $7.4 billion in settlement of lawsuits over the toll of OxyContin - On Thursday, Purdue Pharma and members of the Sackler family who own the company agreed to pay up to $7.4 billion to...more

Foley & Lardner LLP

SEC Settlement Highlights Importance of Proper Disclosure Requirements for Private Fund Managers

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On January 10, 2025, the Securities and Exchange Commission (SEC) settled charges against two fund managers (collectively the “Fund Managers”) and their sole owner, chief executive office, chief compliance office, and founder...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - June 2024 #4

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Under Armour on Friday said it has agreed to pay $434 million to settle a 2017 class action lawsuit accusing the sports apparel maker of defrauding shareholders about its revenue growth in order to meet Wall Street forecasts....more

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