Lehigh Valley Health Network Inc., a Pennsylvania health system, has agreed to settle a 401(k) forfeiture suit for $1.15 million. The company operates 32 hospitals in Pennsylvania and New Jersey after a 2024 merger with Jefferson Health and employs about 65,000 workers. The case is Kiskeravage et al. v. Lehigh Valley Health Network Inc. et al., case number 5:24-cv-05567, U.S. District Court for the Eastern District Read More
DOL Issues Guidance Approving Lifetime Income Insurance Products in 401(k) Plans
The Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor (DOL) recently issued an advisory opinion clarifying that employers can offer lifetime income insurance products as default investments in 401(k) plans. The guidance follows an executive order from President Donald Trump directing increased access to so-called “nontraditional” retirement plan assets. DOL Secretary of Labor Lori Read More
CVS PBM Caremark Appeals $290M Overbilling Judgment
CVS Caremark, the pharmacy benefits manager (PBM) for CVS, has filed a notice of appeal of a $290 million judgment in a lawsuit alleging that it overbilled for Medicare Part D-sponsored drugs. The judgment was increased from $95 million to $290 million in August 2025 in an order from a Pennsylvania federal district court that included treble damages for Caremark’s “serious” misconduct under the False Claims Act. The Read More
Former Partner Files ERISA Class Action Against Husch Blackwell for Delayed 401(k) Contributions
A former equity partner at Husch Blackwell LLP has filed a proposed class action alleging that the law firm unlawfully withheld and misused employee 401(k) contributions. The suit, which is pending in the U.S. District Court for the Western District of Missouri, accuses the firm of violating the Employee Retirement Income Security Act (ERISA) by holding funds deferred from employees’ salaries and using them to cover Read More
LifePoint Health’s Motion to Dismiss 401(k) Class Action Denied
A federal district court judge in Tennessee has denied LifePoint Health’s motion to dismiss a proposed class action accusing the company of mismanaging its 401(k) plan. As a result of the ruling, current and former LifePoint employees can proceed with their claims that the company and its fiduciaries violated the Employee Retirement Income Security Act (ERISA) by charging excessive fees and improperly using forfeited Read More
Federal Judge Rejects Monetary Damages Claim by American Airlines Workers in ESG Investment Class Action
A Texas federal district court judge entered final judgment in favor of American Airlines in a class action lawsuit filed by workers over alleged violations of the Employee Retirement Income Security Act (ERISA). The workers claimed that the company’s investment emphasis on environmental, social, and governance (ESG) factors in its retirement plan breached the duty of loyalty under ERISA. The case is Spence v. Read More
Mass Amazon Layoffs Attributed to “Culture,” Not Financial Woes or Increased AI Usage
Amazon recently announced 14,000 layoffs, but company executives are not blaming the downsizing on financial performance or the increased use of artificial intelligence (AI). Instead, Amazon CEO Andy Jassy attributed the layoffs to a “mismatch in company culture.” The CEO’s statement has concerned HR professionals. If HR has erred in hiring as many as 14,000 people, as some claim, then HR and the hiring process Read More
Elon Musk’s Trillion-Dollar Demands Likely to Impact Worker Earnings Morale Negatively
Over 75% of Tesla shareholders recently approved Elon Musk’s latest pay package, potentially worth $1 trillion. If Tesla achieves certain milestones under his tutelage over the next decade, Musk, who already tops the record books as the world’s first person to be worth $500 billion, could become the world’s first trillionaire. Despite the hoopla, however, experts warn that the monster pay package could have an Read More
Cigna Settles ERISA Suit Over Out-of-Network Providers for $5.7 Million
Cigna Health and Life Insurance Co. has offered to settle a proposed class action lawsuit for $5.7 million. The case is Hecht et al. v. The Cigna Group, case number 1:24-cv-05926, U.S. District Court for the Northern District of Illinois. The plaintiffs accused Cigna of violating the Employee Retirement Income Security Act (ERISA) by advertising out-of-network healthcare providers to plan participants as Read More
U.S. Supreme Court Ruling on Tariffs Likely to Impact Economy
Various tariff cases before the U.S. Supreme Court may lead to greater volatility in labor and employment matters, depending on how the Court rules. Rulings upholding the tariffs may adversely affect compensation, labor demand, and employee morale. On the other hand, some employers might benefit from the increased costs that tariffs can impose on foreign competitors, leading to higher sales and more competitive Read More
