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Union Moves To Dismiss Lawsuit Over Kickbacks

Law360 (July 10, 2007, 12:00 AM EDT) -- A New York teachers' union moved Monday to dismiss a class action alleging that the union acted as a shill for an insurance company and several investment funds, promoting their services to employees in exchange for payments.

The New York State United Teachers said in a memo that the court did not have jurisdiction under the Employee Retirement Income Security Act, as the plaintiffs alleged. It said that the plan, which was run by the school district rather than the union, was a “governmental plan” exempt...
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