Continental ERISA Suit Over 'Sham Divorces' Tossed

Law360, New York (October 20, 2009, 3:18 PM EDT) -- Continental Airlines Inc. has lost a bid to regain retirement money it claims was wrongly paid out to several pilots still working for the airline who allegedly obtained sham divorces and then assigned their pensions to their ex-wives to game the Employee Retirement Income Security Act.

Judge Gray Miller of the U.S. District Court for the Southern District of Texas on Monday dismissed with prejudice Continental's complaint against several pilots, saying that even if their divorces were in bad faith, ERISA does not support disallowing their...
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