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Benefits
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March 17, 2025
Singaporean Tech Co. Inks $46M Investor Settlement
Singaporean tech conglomerate Sea Ltd. has reached a $46 million settlement to end a putative securities class action over investor statements that allegedly downplayed massive losses to its video game and e-commerce divisions, according to a filing in Arizona federal court.
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March 17, 2025
Amazon Beats Investor Suit Over Third-Party Seller Practices
A Washington federal judge on Monday tossed a consolidated proposed securities class action claiming Amazon and its top brass duped investors about the company's fulfillment capacity and third-party seller practices, finding the lawsuit doesn't sufficiently allege the executives were deliberately reckless or motivated to deceive shareholders.
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March 17, 2025
VA To End Medical Care For Gender Dysphoria
The U.S. Department of Veterans Affairs will stop offering medical treatments for gender dysphoria in order to comply with an executive order by President Donald Trump, the agency announced Monday.
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March 17, 2025
4 Suits Benefits Attys Should Watch As ESG Pressures Persist
A New York City pension fund recently escaped a proposed class action challenging its decision to divest nearly $4 billion in fossil fuel stocks, but experts say potential liability related to environmental, social and governance investment factors in retirement plan investment decisions is on the rise. Here are four suits involving challenges to employee retirement plan investing and ESG that attorneys say they're watching after New York City escaped a suit from its workers.
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March 17, 2025
Full 7th Circ. Won't Revive Suit Over Late Medicaid Payments
The full Seventh Circuit has answered the "enormous question" of whether a Chicago hospital can sue the state of Illinois to force the managed-care organizations it contracts with to make timely Medicaid payments, concluding the hospital doesn't have a federal right to prompt payments for fear of turning federal trial courts into "de facto Medicaid claims processors."
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March 17, 2025
Split 9th Circ. Won't Halt Federal Workers Reinstatement Order
A divided Ninth Circuit panel on Monday denied President Donald Trump's administration an immediate administrative stay of a California district court order requiring reinstatement of some probationary federal workers fired from six agencies, the majority saying a pause "would disrupt the status quo and turn it on its head."
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March 17, 2025
X Corp. Says Dismissal, Sanctions Go Together In Bonus Suit
A former X Corp. senior director of compensation engaged in "vexatious conduct" that should not allow him to drop his suit claiming unpaid bonuses without sanctions, the social media platform told a California federal judge.
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March 17, 2025
Vituity Inks $8.75M Deal To End 401(k) Excessive Fee Suit
Healthcare management company Vituity has agreed to pay $8.75 million to resolve a proposed class action alleging it excessively charged workers $600 in annual retirement plan management fees in violation of federal benefits law, according to a California federal court filing.
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March 17, 2025
American Airlines Pension Data Suit Transferred To Texas
American Airlines can ship to Texas a proposed class action alleging the company used outdated statistics to calculate retirees' pension payments, an Illinois federal judge ruled, finding the worker leading the case was one of the only things tying the suit to Illinois.
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March 17, 2025
Houston Midwife Arrested In Texas' 1st Criminal Abortion Case
A Houston-area midwife has been arrested after an investigation by the Texas attorney general's office for allegedly providing illegal abortions, Attorney General Ken Paxton announced Monday, the first such criminal charges brought since the state issued its near-total abortion ban.
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March 14, 2025
US Trustee Pans Pump Co.'s $9M Asbestos Insurance Deal
The U.S. Trustee's Office has challenged a proposed $9 million settlement between a Chapter 7 trustee for a bankrupt Connecticut pump company and two insurers, saying the agreement nonconsensually deprives third parties of their asbestos-related personal injury claims against the insurance carriers.
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March 14, 2025
NC Ex-Doctor Gets 2.5 Years For Drug Test Billing Scheme
A 72-year-old doctor in North Carolina was sentenced Friday to two and a half years in prison and ordered to hand over $2 million in restitution for a fraudulent billing scheme involving medically unnecessary drug tests, prosecutors said.
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March 14, 2025
FTC Urges 8th Circ. Not To Pause Insulin Pricing Case
The Federal Trade Commission has urged the Eighth Circuit not to pause its in-house case accusing Caremark Rx, Express Scripts and OptumRx of artificially inflating insulin prices, telling the appeals court the pharmacy benefit managers have no chance of winning on their constitutional claims.
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March 14, 2025
Dr. Oz Pledges 'Upcoding' Crackdown If Confirmed At CMS
Dr. Mehmet Oz told lawmakers he would combat rising healthcare costs by showing there's a "new sheriff in town" opposed to so-called upcoding by Medicare Advantage plans, as he sought support Friday for his nomination to lead the U.S. Centers for Medicare and Medicaid Services.
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March 14, 2025
Judge Splits $79M Judgment In Danish Tax Fraud Case
A New York federal judge divided a nearly $79 million judgment against four investors and their pension plans after a jury in February found them liable for participating in a tax fraud scheme against the Danish government.
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March 14, 2025
Sutter Health Reaches $4.3M Deal To End Retirement Suit
Nonprofit healthcare system Sutter Health will pay $4.3 million to settle a class action from workers alleging their employee retirement plan was saddled with excessive fees and poorly performing investments, according to filings in California federal court.
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March 14, 2025
Insurance Co. Unlawfully Nixed Disability Benefits, Suit Says
Hartford Life and Accident Insurance Co. abruptly cut off a FedEx employee's disability benefits and refused to consider her doctor's conclusion that she's unable to return to work, in violation of federal benefits law, according to a lawsuit filed in Tennessee federal court.
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March 13, 2025
Ohio Health Insurer Wins $24M Verdict ln Racketeering Case
An Ohio jury has awarded Medical Mutual of Ohio more than $24 million in damages, after the insurer accused its rivals FrontPath Health Coalition and HealthScope Benefits of undercutting the bidding process for healthcare contracts with the city of Toledo.
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March 13, 2025
Judge Trims Claims Of Botched Federal Savings Transition
A D.C. federal judge trimmed a proposed class of federal employees and their family members' claims against two companies that manage workers' retirement plan and the plan's board Wednesday, tossing claims of negligence and breach of fiduciary duty but leaving breach of contract and unjust enrichment claims intact.
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March 13, 2025
Federal Judge Still Skeptical Of Amazon Securities Fraud Suit
A Washington federal judge said he was "struggling" with a group of Amazon shareholders' stance in a securities fraud suit on Thursday, doubtful that stock sales numbers were enough to back claims that Jeff Bezos had a motive to dupe investors about the company's fulfillment capacity and third-party seller practices.
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March 13, 2025
Chicago Teachers' Pension Fund Beats Accountant's Bias Suit
The Chicago Teachers' Pension Fund defeated Thursday a former accountant's lawsuit claiming he was passed over for promotions and ultimately fired because he was a Black man in his 60s, with an Illinois federal judge finding it was his declining job performance that cost him the job.
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March 13, 2025
PBMs Tell FTC 5-Month Delay Too Long For In-House Insulin Trial
The nation's "Big Three" pharmacy benefit managers say they want to get to trial in the Federal Trade Commission's administrative suit against them sooner rather than later, arguing that the agency's request for a five-month delay would be too long, but they're open to a three-week postponement.
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March 13, 2025
SEIU Fund Escapes Surgery Centers' Underpayment Suit
A Service Employees International Union benefit fund no longer has to face a lawsuit four surgical centers launched accusing it of shortchanging them on patient treatments, with a New York federal judge saying Wednesday the centers have failed to show that any agreement existed between themselves and the fund.
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March 13, 2025
6th Circ. Won't Rehear Ex-Electric Co. Exec's Severance Suit
The Sixth Circuit will not rethink its panel decision upholding the dismissal of a severance suit brought by American Electric Power Services Corp.'s former chief digital officer who claimed he was shortchanged on his way out the door, according to a Thursday order.
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March 13, 2025
US Bank Agrees To Massive Class In 401(k) Fee Suit
U.S. Bancorp told a Minnesota federal court Thursday that it agreed to the certification of an approximately 93,000-member class in a lawsuit alleging the financial company allowed its employee 401(k) to pay exorbitant recordkeeping fees.
Expert Analysis
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Parsing NJ Court's Rationale For Denying Lipitor Class Cert.
A New Jersey federal court's recent Lipitor rulings granting summary judgment and denying motions for class certification for two plaintiff classes offer insight into the level of rigorous analysis required by both parties and their experts to satisfy the requirements of class certification, says Catia Twal at Edgeworth Economics.
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Series
After Chevron: Challenges Loom For PBGC Actions
After Loper Bright, two recent actions taken by the Pension Benefit Guaranty Corp. already under scrutiny seem destined to be challenged and resolved under the new standard of judicial deference, which will greatly affect employers with potential withdrawal liability exposure, say Robert Perry and David Pixley at Jackson Lewis.
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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Series
Teaching Scuba Diving Makes Me A Better Lawyer
As a master scuba instructor, I’ve learned how to prepare for the unexpected, overcome fears and practice patience, and each of these skills – among the many others I’ve developed – has profoundly enhanced my work as a lawyer, says Ron Raether at Troutman Pepper.
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A Guide To Long-Term, Part-Time Employee Determinations
With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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Series
After Chevron: ERISA Challenges To Watch
The end of Chevron deference makes the outcome of Employee Retirement Income Security Act regulatory challenges more uncertain as courts become final arbiters of pending lawsuits about ESG investments, the definition of a fiduciary, unallocated pension forfeitures and discrimination in healthcare plans, says Evelyn Haralampu at Burns & Levinson.
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Justices' Intent Witness Ruling May Be Useful For Defense Bar
At first glance, the U.S. Supreme Court’s recent Diaz v. U.S. decision, allowing experts to testify to the mental state of criminal defendants in federal court, gives prosecutors a new tool, but creative white collar defense counsel may be able to use the same tool to their own advantage, say Jack Sharman and Rachel Bragg at Lightfoot Franklin.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Why Calif. Courts Are Split On ERISA Forfeited Contributions
A split between two California federal courts, in deciding whether an employer’s use of forfeited retirement plan contributions to offset future costs violates the Employee Retirement Income Security Act, suggests employers should soon expect more ERISA cases to advance this novel legal theory when making anti-inurement and breach of fiduciary duty claims, says Blake Crohan at Alston & Bird.
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Series
Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.