ERISA Cases Seeking U.S. Supreme Court Review in 2026
The U.S. Supreme Court recently heard arguments in a withdrawal liability case involving the Employee Retirement Income Security Act (ERISA). Furthermore, two more petitions about ERISA matters are pending before the high court. U.S. Supreme Court Hears Arguments in Withdrawal Liability Case The U.S. Supreme Court recently heard arguments in an ERISA case with limited […]
The Risks of Level-Funded Health Plans
Level-funded health plans are rising in popularity. Employers are gravitating toward the plans based on promises of consistent monthly payments, possible refunds, and fewer administrative responsibilities. Insurance companies market the plans as similar to self-funded plans in terms of cost efficiency, while guaranteeing fully insured premiums. However, the reality is that level-funded health plans pose […]
Bipartisan Coalition, ERIC Support PBM Fiduciary Bill
The ERISA Industry Committee is backing a pharmacy benefit manager (PBM) bill that would establish a fiduciary duty under the Employee Retirement Income Security Act (ERISA) for PBMs to put the interests of employer plan sponsors and participants ahead of their own. Sen. Roger Marshall (R-Kan.) and three bipartisan sponsors have proposed the PBM Fiduciary, […]
5th Circuit Panel Rules for Aramark in Finding Arbitration Clause Subject to Court Review in ERISA Case Against Aetna
A split three-judge panel of the U.S. Court of Appeals for the Fifth Circuit ruled that a federal district court should decide whether Aramark can proceed with its lawsuit against Aetna or must resolve the dispute through arbitration. According to the court’s ruling, the arbitration clause is sufficiently ambiguous to be subject to court review. […]
Employers Facing ERISA Lawsuits Over Cost and Value of Voluntary Benefit Plans
Employers are increasingly facing lawsuits under the Employee Retirement Income Security Act (ERISA) for their voluntary benefit plans, which include products such as accident, critical illness, hospital indemnity, and cancer insurance. Since coverage is voluntary, employees pay most or all of the policy premiums, although employers deduct the premiums from their paychecks. Filed just before […]
Court Denies Investment Adviser’s Bid to Dismiss Utility Co. 401(k) Suit
A Missouri federal district court judge refused to dismiss a proposed class action suit by former employees of a Midwest utility company alleging that an investment adviser cost them millions in retirement plan losses after giving them poor advice. The case is Doll et al. v. Evergy Inc. et al., Case Number 4:25-cv-00043, U.S. District […]
Notable ERISA Rulings from November
C.P. et al. v. Blue Cross Blue Shield of Illinois, Case Number 23-4331, U.S. Court of Appeals for the Ninth Circuit In C.P., the U.S. Court of Appeals for the Ninth Circuit overturned a grant of summary judgment in a class action in favor of transgender employee health plan participants who claimed that the insurance […]
4th Circuit Questions Class Status in Genworth Financial 401(k) Suit
A three-judge panel of the U.S. Court of Appeals for the Fourth Circuit seemed to express doubt over the propriety of class status during arguments in an Employee Retirement Income Security Act (ERISA) lawsuit by Genworth Financial employee retirement plan participants. The class, which consists of nearly 4,000 members, claims that their retirement savings plummeted […]
DOL Moves to Dismiss Its Appeal of Fiduciary Rule Challenge
The Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor is opting to abandon its appeal of the legal challenges to the so-called fiduciary rule. After insurance industry groups filed immediate legal challenges to the 2024 fiduciary rule proposed by the DOL under the Biden administration, two federal district courts issued stays preventing […]
Pennsylvania Health Network Settles 401(k) Forfeiture Suit for $1.15 Million
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 […]
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 […]
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 […]
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 […]
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 […]
Federal Judge Dismisses 401(k) Lawsuit Against AutoZone
A federal court judge in Tennessee granted judgment in favor of AutoZone and its investment committee in an Employee Retirement Income Security Act (ERISA) case involving investment choices in its company 401(k) plan. After a bench trial, the judge ruled that plan participants failed to show that AutoZone improperly managed 401(k) plan investment options. The […]
District Court Greenlights ERISA Fiduciary Breach Claim for Lack of Disclosures and No Surprises Act Claim
A federal district court recently allowed claims under the Employee Retirement Income Security Act (ERISA) and the No Surprises Act to proceed but dismissed various other claims. More specifically, the court refused to dismiss an ERISA fiduciary breach claim for failing to make certain required disclosures and a claim under the No Surprises Act for […]
Law Firms Accused of Misusing Employee 401(k) Funds in Violation of ERISA
Plan participants filed a class action suit under the Employee Retirement Income Security Act (ERISA) against their employer, Husch Blackwell LLP, a Kansas City law firm. The suit alleges that the law firm misused employee 401(k) contributions to fund operating expenses and other breaches of fiduciary duty. The suit, which is now pending in the […]
DOL Includes New PBM Rule in Regulatory Update
The U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) recently used its regulatory update to announce several new rules, including a new fee disclosure rule concerning pharmacy benefit managers (PBMs). Characterized as a “high-priority” action for EBSA, the PBM fee disclosure rule would focus on direct and indirect compensation to further an executive […]
Cigna Reaches Settlement in ERISA Suit Over Misrepresentation of Out-of-Network Providers
Cigna Health and Life Insurance Company recently agreed to settle a proposed class action lawsuit following mediation. Plan participants claimed in the suit that Cigna violated the Employee Retirement Income Security Act (ERISA) when it advertised to plan participants certain providers as in-network who were in fact out-of-network. The case is Hecht et al. v. […]
Forfeiture Claim Dismissed, Excessive Fee Claim Survives in Novo Nordisk 401(k) Suit
A New Jersey federal district court judge granted a partial motion to dismiss in a Novo Nordisk 401(k) suit alleging violations of the Employee Retirement Income Security Act (ERISA). The judge cut claims that Novo Nordisk illegally used forfeited funds to pay future employer contributions to the plan and maintained a poorly performing target date […]
Class Action Over 401(k) Forfeitures and Fees Against Energy Co. Survives Dismissal
A Florida federal district court judge recently denied NextEra Energy’s motion to dismiss a proposed Employee Retirement Income Security Act (ERISA) class action filed by John Stewart, an employee who participates in the company’s 401(k) plan. The participant claims that the energy company misappropriated forfeited funds and a recordkeeper illegally profited from plan earnings. The […]
Employer Health Plans Vulnerable to ERISA Suits
After conducting an American workplace survey on fiduciary requirements in employee benefits plans, researchers at Duke University are warning that U.S. employers with such plans are vulnerable to lawsuits. According to the survey results, many employers fail to meet even basic guidelines for performing fiduciary duties. As the researchers explain, this omission can easily result […]
Trump Issues Executive Order Broadening Assets for 401(k) Investments
President Donald Trump recently issued an executive order (EO) to facilitate retirement plans’ investments in a wider range of assets, including cryptocurrency and private equity. The purpose of the EO is to allow the more than 90 million Americans with defined-contribution retirement plans to access the same range of assets as public and government pension […]
Class Achieves Partial Victory in United Mental Health Claims Battle
A California federal district court judge has entered judgment in part in favor of both a class of patients and United Behavioral Health (UBH) in a fight over coverage for mental health and substance abuse disorder treatments. The court found that UBH’s overly restrictive coverage guidelines breached fiduciary duties under the Employee Retirement Income Security […]
President Signals Policy Shift with High Stakes for 401(k) Plans
By Anne Tyler Hall and Samuel Krause. Hall Benefits Law practitioners discuss practical and strategic takeaways for plan sponsors after the executive order was issued directing federal agencies to broaden 401(k) access to cryptocurrency, private equity, private credit, and venture capital assets. Bloomberg Daily Tax Report (Aug. 15, 2025, 4:30 AM EDT) — On August […]
DOL Issues to Watch for the Remainder of 2025
If the Senate confirms President Donald Trump’s choice of Daniel Aronowitz as assistant secretary of labor for the U.S. Department of Labor (DOL), benefits attorneys could see some major policy changes later this year. Enforcement of ERISA by EBSA Priorities in the enforcement of the Employee Retirement Income Security Act (ERISA) are likely to change, […]
ERIC Joins in Amicus Brief Arguing in Favor of Forfeiture Rule Before Ninth Circuit
The ERISA Industry Committee (ERIC), the Chamber of Commerce of America, and the American Benefits Council have filed an amicus brief in Hutchins v. HP, Inc. This case, which is currently pending before the U.S. Court of Appeals for the Ninth Circuit, is a class action lawsuit in which retirement plan participants are challenging the […]
Judge Approves Historic $69M Settlement in UnitedHealth 401(k) Suit
A federal judge has given final approval to a historic $69 million settlement in a class action lawsuit over UnitedHealth Group’s 401(k) plan. The plaintiffs alleged that UnitedHealth violated their fiduciary duties under the Employee Retirement Income Security Act (ERISA) by retaining the poorly performing Wells Fargo target date funds in the company’s 401(k) plan. […]
Western Milling Employee Stock Plan Files ERISA Class Action Over ESOP
Jose Davalos, a former employee of Western Milling LLC, has filed a class action lawsuit in a California federal court, alleging that the company forced the sale of its employee stock ownership plan (ESOP) assets at an unreasonably low price. In preparation for a larger transaction in which Western Milling was sold to Viserion Milling […]
401(k) Pension Plan Participants File Class Action Against National Rural Electric Cooperative Based on ERISA Violations
Two 401(k) pension plan participants have filed a class action lawsuit against the National Rural Electric Cooperative Association (NRECA) in a Virginia district court. They allege ongoing Employee Retirement Income Security Act (ERISA) violations, including breaches of fiduciary duties, such as financial mismanagement, self-dealing, and excessive fees. The plaintiffs claim that NRECA’s violations have cost […]
Court Rules 401(k) Plan Fiduciaries Must Repay Over $100,000 Within 60 Days
The Court has issued a memorandum opinion in Micone v. iProcess Online, Inc., 2025 WL 1158885 (D. Md. 2025), which concerns the mishandling of 401(k) participant contributions. After an investigation into the employer’s 401(k) plan funds, the U.S. Department of Labor (DOL) sued the company, which also served as plan sponsor and ERISA plan administrator. The DOL […]
States Lead Way in Prescription Drug Price Reforms as Federal Efforts Stall
Federal legislation concerning prescription drug prices, including the regulation of drug manufacturers, health insurance companies, or pharmacy benefit managers (PBMs), has gained no momentum amidst partisan bickering and pharmaceutical company lobbying. In response, some states are moving ahead with their legislation to rein in prescription drug prices. Whether these bills will reduce costs or create […]
Attorneys’ Fees Request Comes in at $23 Million in UnitedHealth’s Historic $69 Million Settlement of 401(k) Suit
As part of UnitedHealth Group’s massive $69 million settlement over poorly performing target date funds in its 401(k) plan, the attorneys who filed the class action lawsuit have requested the court order $23 million in attorneys’ fees. The attorneys at Sanford Heisler Sharp and Halunen Law included one-third of the settlement amount in fees, $735,163 […]
District Court Denies Motion to Dismiss Wellness Program Tobacco Surcharge Litigation
A Virginia federal district court recently denied the employer’s motion to dismiss a class action lawsuit brought by wellness program participants over tobacco surcharges. The case is Bokma v. Performance Food Grp., Inc., 2025 WL 1452042 (E.D. Va. 2025). The Court referenced an April 2025 ruling in another federal district court (Mehlberg v. Compass Grp. USA, Inc., […]
Ninth Circuit Dismisses Intel’s 401(k) Lawsuit Concerning Inclusion of Private Equity Investments
After six years of litigation, a three-judge panel of the Ninth Circuit has dismissed a 401(k) lawsuit filed by Intel employees against the company. The employees alleged that including private equity funds and hedge funds as investment options in its two defined contribution plans was a breach of fiduciary duties under the Employee Retirement Income […]
UnitedHealth Faces Another Lawsuit Concerning Misused Forfeited 401(k) Funds
Employees have now filed two separate 401(k) lawsuits against UnitedHealth Group (UHG), claiming that the company misused forfeited 401(k) funds from employees to reduce employer contributions into the plan. First, employees sued UHG in Kotalik et al. v. UnitedHealth Group Inc. et al., reportedly alleging that the company used the forfeited funds to pay employer […]
Significant 2025 ERISA Decisions for Benefits Attorneys
Various courts, including the U.S. Supreme Court, have decided cases involving the Employee Retirement Income Security Act (ERISA) so far this year. These decisions include the Supreme Court’s unanimous resurrection of an alleged retirement fund mismanagement case against Cornell University and the revival of a yacht company’s claim against its health benefits administrators for excessive […]
DOL Rescinds 2022 Guidance Directed to 401(k) Plan Fiduciaries Investing in Cryptocurrency
The U.S. Department of Labor (DOL) recently issued Compliance Assistance Release No. 2025-01. This release rescinds the DOL’s 2022 compliance assistance release concerning investments in cryptocurrency by 401(k) plan fiduciaries. In its 2022 release, the DOL outlined its concerns about the prudence of 401(k) plan fiduciaries making cryptocurrency investments available to plan participants. The release […]
Ritchie Trucking ESOP Case Settles for $1.9 Million
Ritchie Trucking Service Inc. has reached a $1.9 million settlement in a class action suit with participants in its employee stock ownership plan (ESOP). Plan participants had filed suit against Ritchie in the U.S. District Court for the Eastern District of California after a 2018 transaction transferred company ownership to the ESOP. The plaintiffs claimed […]
Federal Parity Enforcement Freeze Results in Uncertainty for Benefits Attorneys
The Trump administration’s U.S. Departments of Labor (DOL), Treasury, and Health and Human Services (HHS) recently announced that it would no longer enforce regulations requiring employer health plans to analyze and compare behavioral healthcare with physical healthcare coverage. Along with a lack of enforcement, the agencies intend to review their enforcement processes more broadly. The […]