The Internal Revenue Service (IRS) recently issued Notice 2024-55, which concerns exceptions to the 10% additional tax under section 72(t) of the Internal Revenue Code (the Code). These exceptions include emergency personal expenses and domestic abuse victim distributions from qualified retirement plans. Section 72(t)(1) imposes an additional 10% tax on a distribution from qualified retirement plans unless the Read More

A federal district court has rejected a bid by healthcare providers to enforce independent dispute resolution (IDR) awards against an insurer under the No Surprises Act (NSA). The case is Guardian Flight LLC v. Health Care Serv. Corp., 2024 WL 2786913 (N.D. Tex. 2024). Guardian Flight LLC, an air ambulance service provider, sued an insurer after it refused to pay a certified IDR entity’s award for disputed Read More

A California federal district court judge has dismissed a novel proposed class action suit against HP involving the company’s alleged misuse of 401(k) funds forfeited by former workers. The judge reasoned that nothing in federal benefits law compelled HP to use the funds for plan expenses rather than to reduce its employer contributions. The case is Hutchins v. HP Inc. et al., case number 5:23-cv-05875, U.S. District Read More

Five pharmacy industry groups have filed an amicus brief supporting the Oklahoma insurance commissioner’s petition for a writ of certiorari to the U.S. Supreme Court concerning a recent Tenth Circuit decision. That ruling partially invalidated a state law regulating pharmacy benefit managers (PBMs). The case is Glen Mulready et al. v. Pharmaceutical Care Management Association, case number 23-1213, U.S. Supreme Read More

Former plan participants in the Credit Union Retirement Plan Association (CURPA) multi-employer 401(k) plan have reached a deal to settle an ERISA suit over excessive fees. The case is Lucero, Brenda et al. v. Credit Union Retirement Plan Association et al., case number 3:22-cv-00208, U.S. District Court for the Western District of Wisconsin. CURPA, a Wisconsin-based professional employer organization, provides Read More

Novel ERISA Suit Challenging Employer’s Use of Forfeited 401(k) Funds Moves Forward In the first suit of its kind, a California federal district court judge refused to dismiss a suit against Qualcomm Inc. by retired workers, who alleged that the company had misspent forfeited 401(k) funds obtained when workers left the company before the employer match to their 401(k) plan had fully vested. The former workers Read More

Tesla’s general counsel has announced that its shareholders recently approved a multibillion-dollar compensation package for its CEO, Elon Musk. The shareholders also approved moving the company’s incorporation from Delaware to Texas. Nonetheless, Musk's compensation package remains an issue in ongoing litigation in Delaware. Earlier this year, the Delaware Court of Chancery rejected Musk’s proposed compensation Read More

A media company has settled a class action lawsuit in which its workers alleged that it failed to negotiate lower investment expenses or properly monitor investment options. Workers at Aegis Media Americas Inc., which Japanese international marketing firm Dentsu owns, accused it of violating its fiduciary duty under the Employment Retirement Income Security Act (ERISA) concerning the workers’ $540 million 401(k) Read More

The U.S. Court of Appeals for the Ninth Circuit recently issued an opinion with critical implications for the healthcare industry. This court decision clarifies the expansive reach of the Employee Retirement Income Security Act’s (ERISA) preemption of state law causes of action relating to preservice coverage communications between healthcare providers and health plan administrators. The case is Bristol SL Holdings Read More

A former Wells Fargo employee filed a proposed class action lawsuit against the company, alleging that it violated the Employee Retirement Income Security Act (ERISA) in using forfeited 401(k) funds to reduce its own contributions to the plan rather than to benefit plan participants. The case is Thomas O. Matula Jr. v. Wells Fargo & Co. et al., case number 3:24-cv-03504, U.S. District Court for the Northern Read More