PE Cos. Aren't Businesses Under ERISA, 1st Circ. Hears

Law360, New York (April 4, 2013, 8:03 PM EDT) -- Sun Capital Partners on Wednesday asked the First Circuit to affirm that it is not responsible for $4.5 million in withdrawal liability to a New England pension fund group on behalf of a bankrupt portfolio company, saying investment firms are not considered trades or businesses under ERISA.

A Massachusetts federal judge ruled in October that Sun Capital was exempt form the liability because it is not a trade or business under the Employee Retirement Income Security Act, and therefore was not responsible for picking up the...
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