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Benefits
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December 08, 2023
Yale Workers Ask 2nd Circ. To Order New Trial In ERISA Suit
Yale University employees urged the Second Circuit to find that a new trial is needed in their lawsuit accusing the school of mismanaging their $5.5 billion retirement plan, saying faulty jury instructions placed the bar too high and resulted in no monetary damages for the class.
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December 08, 2023
Workers Want Win On Shell 401(k) Mismanagement Claim
Current and former employees urged a Texas federal judge Friday to award them a win on one of their claims against Shell Oil Co. in their suit alleging the energy giant mismanaged their 401(k) plan, arguing there are no remaining disputes on the issue to resolve at trial.
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December 08, 2023
Madoff Trustee Seeks $45M NY Bankruptcy Court Distribution
The trustee for the Bernie Madoff fund asked a New York bankruptcy court Friday to distribute roughly $45 million to hundreds of investors who were victims of the notorious Ponzi scheme more than a decade ago.
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December 08, 2023
Fla. Doctor's 20-Year Sentence Halved For Gov't Cooperation
A Florida federal judge on Friday cut a 20-year sentence in half for a doctor who operated a $681 million scheme to bill for fraudulent treatments for patients with drug and alcohol addiction after prosecutors commended his commitment to cooperation and his testimony in another trial.
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December 08, 2023
SC Argues With 4th Circ. Over Right To Sue Under Medicaid
A recently decided U.S. Supreme Court case that tailored the test for when private lawsuits can be filed under a federal health law took center stage Friday at the Fourth Circuit, where judges grappled with whether they must rethink a previous ruling preventing South Carolina from dropping a Medicaid provider pact it had with Planned Parenthood.
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December 08, 2023
Northern Trust To Pay $2.5M To Exit AutoZone 401(k) Suit
AutoZone retirement plan participants urged a Tennessee federal judge to approve a $2.5 million deal to end claims that Northern Trust shirked its duties as their 401(k)'s investment adviser, seeking to resolve their allegations against the financial services company while claims against the auto parts retailer proceed.
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December 08, 2023
Ark. Youths Urge 8th Circ. To Uphold Access To Trans Care
Four Arkansas youths with gender dysphoria and their parents have urged the Eighth Circuit to affirm their access to gender-affirming medical care, arguing that the lower court correctly found Arkansas' new law banning the treatment for transgender youth to be unconstitutional.
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December 08, 2023
UnitedHealth Faces $495M Suit Over Medicare Advantage Ads
The estate of a patient accused UnitedHealth Group on Thursday of violating the law with high-pressure sales tactics that dupe vulnerable seniors into signing up for Medicare Advantage plans they don't need, generating an illegal windfall for the company.
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December 08, 2023
Ex-Worker Says Western & Southern Robbed Her Of $1M
Western & Southern Financial Group Inc. allegedly fired a 73-year-old insurance sales representative based on trumped-up misconduct allegations in order to get out of paying her the more than $1 million she had earned from a company retention incentive program upon her retirement, a new suit says.
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December 08, 2023
Pomerantz To Lead Maui Fire Suit Against Hawaii Utility
A California federal judge has selected Pomerantz LLP as lead counsel in a suit against Hawaiian Electric over a downturn in stock price after a deadly fire broke out on Maui, finding the party with the highest amount of money purportedly at stake could represent the class.
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December 08, 2023
US Chamber Looks To Kill SEC Buyback Rules At 5th Circ.
The U.S. Chamber of Commerce is urging the Fifth Circuit to scrap the U.S. Securities and Exchange Commission's recently suspended rules governing stock buybacks, following the agency's failure to revise the rules within a court-mandated deadline.
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December 08, 2023
Steelmaker Says 401(k) Mismanagement Suit Not Ripe
A steel manufacturer urged a Florida federal court to throw out a proposed class action, saying a plan participant who brought the lawsuit failed to take his claims accusing the company of mismanaging its 401(k) plan through the required administrative process before lodging his complaint.
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December 08, 2023
5 Recent ERISA Decisions Attorneys Should Know
Appellate courts issued a bevy of important decisions applying federal benefits law in 2023, including a recent Second Circuit ruling in favor of Cornell University that deepened a circuit split and a Tenth Circuit finding that an Oklahoma law regulating pharmacy benefit managers was preempted. Here, Law360 looks back at five published circuit court decisions in ERISA litigation from the second half of 2023 that benefits lawyers should know.
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December 07, 2023
Bankrupt Drug Treatment Center Takes Cigna Row To 9th Circ.
A holding company for a drug and alcohol treatment center urged the Ninth Circuit on Thursday to revive its lawsuit claiming Cigna forced it into bankruptcy by not paying more than $8 million in authorized claims, saying the health insurer wrongly accused the center of violating its health term plans.
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December 07, 2023
Biden Executive Order Reforms Tribal Funding Access
President Joe Biden has signed an executive order that will make it easier for tribal nations to access and invest federal funds, giving them greater autonomy over their use of resources.
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December 07, 2023
Judge Drops MedCost From Suit Challenging Coverage Denial
A North Carolina federal judge cited lack of jurisdiction as he dismissed MedCost from a lawsuit that accused the insurer and others of illegally refusing to cover the cost of an individual's stay at a residential treatment center.
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December 07, 2023
Blue Cross Unit 'Abused' Control Of Health Plan, Suit Says
The Blue Cross of Idaho has "abused" its role as the administrator of a fragrance company's employee health plan and deprived the company of at least $1.6 million, the fragrance company alleges.
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December 07, 2023
Feds Seek Prison Time For Ga. Banker Org's Ex-Accountant
The federal government on Wednesday recommended that a former accountant for the Georgia Bankers Association be sentenced to 18 months in prison for embezzling $700,000 from the trust the organization used to offer insurance plans to its members.
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December 07, 2023
Actuary Co. To Pay $4M To End 401(k) Fee Suit
An actuarial and underwriting company agreed to shell out $4 million to end a proposed class action from ex-workers who accused it of saddling their retirement plan with excessive fees and failing to keep an eye on its investment lineup, according to a filing in New Jersey federal court.
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December 07, 2023
Mich. Justices Weigh Effect Of Ending Wage, Sick Leave Laws
Michigan's Supreme Court justices appeared aware on Thursday that employers are anxiously awaiting their ruling on the state's minimum wage and sick time laws, devoting some of the day's arguments to the practicalities of what would happen if they struck down the current laws.
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December 07, 2023
Ariz. BCBS Rips 'Kitchen-Sink' Suit Over Low Doctor Payouts
The Arizona arm of Blue Cross Blue Shield is coming out swinging against what it calls a "kitchen-sink complaint" brought by groups representing hundreds of doctors claiming the insurer has unfairly been paying them as in-network providers, saying that the attempt to "coerce greater reimbursement is legally insufficient in fatal ways."
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December 07, 2023
Lawmakers Pitch Bipartisan Tweaks To Retirement Law
Committee leaders in the House and Senate unveiled draft legislation making technical corrections to a sweeping retirement policy overhaul Congress passed in December 2022, expanding access to and incentives for employer-sponsored retirement plans, with the bill release quickly garnering praise from a top industry group.
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December 06, 2023
Blue Cross Can't Decertify Trans Care Class
The class of transgender individuals suing Blue Cross Blue Shield of Illinois over coverage denials for gender dysphoria-related treatments should be amended to further spell out how prospective members may qualify to be in the class, a Washington federal judge has said, rejecting the insurer's attempt to unravel certification.
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December 06, 2023
GE Can't Escape Ex-Wind Farm Workers' Severance Suit
General Electric Co. can't avoid a suit claiming it violated federal benefits law by reneging on severance agreements signed by two wind farm workers, a Kansas federal judge said, rejecting the company's assertion that the ex-employees should've internally appealed the severance pay denial before filing suit.
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December 06, 2023
Seafood Co. Breaks Free From Ex-Workers' ESOP Suit
A Georgia federal court agreed to toss a federal benefits lawsuit from ex-workers of Inland Fresh Seafood Corp. of America Inc. alleging mismanagement of an employee stock ownership plan, citing the proposed class of ESOP participants' failure to exhaust their administrative remedies before filing suit.
Expert Analysis
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Series
Performing Music Makes Me A Better Lawyer
The discipline of performing live music has directly and positively influenced my effectiveness as a litigator — serving as a reminder that practice, intuition and team building are all important elements of a successful law practice, says Jeff Wakolbinger at Bryan Cave.
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The SEC's Cooled Down But Still Spicy Private Fund Rules
Timothy Spangler and Lindsay Trapp at Dechert consider recently finalized U.S. Securities and Exchange Commission rules, which significantly alter the scope of obligations private fund advisers must meet under the Investment Advisers Act, noting the absence of several contentious proposals and litigation that could result in implementation delays.
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Breaking Down High Court's New Code Of Conduct
The U.S. Supreme Court recently adopted its first-ever code of conduct, and counsel will need to work closely with clients in navigating its provisions, from gift-giving to recusal bids, say Phillip Gordon and Mateo Forero at Holtzman Vogel.
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Opinion
Legal Profession Gender Parity Requires Equal Parental Leave
To truly foster equity in the legal profession and to promote attorney retention, workplaces need to better support all parents, regardless of gender — starting by offering equal and robust parental leave to both birthing and non-birthing parents, says Ali Spindler at Irwin Fritchie.
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Pa. City Ch. 9 Ruling Raises Municipal Financing Concerns
A Pennsylvania district court’s recent ruling in a Chapter 9 case filed by the city of Chester, Pennsylvania, strengthens the foundations of the municipal bond market, but also demonstrates that bankruptcy courts continue to struggle with some of the features of municipal revenue bonds and issue rulings that contradict market expectations, say attorneys at Cadwalader.
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Series
Writing Thriller Novels Makes Me A Better Lawyer
Authoring several thriller novels has enriched my work by providing a fresh perspective on my privacy practice, expanding my knowledge, and keeping me alert to the next wave of issues in an increasingly complex space — a reminder to all lawyers that extracurricular activities can help sharpen professional instincts, says Reece Hirsch at Morgan Lewis.
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What Lawyers Must Know About Calif. State Bar's AI Guidance
Initial recommendations from the State Bar of California regarding use of generative artificial intelligence by lawyers have the potential to become a useful set of guidelines in the industry, covering confidentiality, supervision and training, communications, discrimination and more, say attorneys at Debevoise.
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Industry Must Elevate Native American Women Attys' Stories
The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.
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Understanding Discovery Obligations In Era Of Generative AI
Excerpt from Practical Guidance
Attorneys and businesses must adapt to the unique discovery challenges presented by generative artificial intelligence, such as chatbot content and prompts, while upholding the principles of fairness, transparency and compliance with legal obligations in federal civil litigation, say attorneys at King & Spalding.
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How Mental Health Ruling Paves Road For Equal Coverage
The Tenth Circuit’s recent ruling in E.W. v. Health Net, which clarified the pleading requirements necessary to establish a Mental Health Parity and Addiction Equity Act violation, is a win for plaintiffs as it opens the door to those who have been denied coverage for behavioral health treatment to prove a mental health parity violation, says Mark DeBofsky at DeBofsky Law.
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An Informed Guide To Mastering Retirement Plan Forfeitures
When considering how to allocate departing retirement plan participants’ forfeitures, sponsors should consider recently filed lawsuits that allege Employee Retirement Income Security Act violations for using such funds to offset employer contributions, as well as proposed IRS guidance concerning how and when they must be used, says Eric Gregory at Dickinson Wright.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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5 New Calif. Laws Employers Need To Know
Now is a good time for employers to evaluate personnel rules to keep pace with California’s newly adopted employee protections, which go into effect early next year and include laws regarding reproductive loss leave, cannabis use, workplace violence prevention and noncompete agreements, say attorneys at Farella Braun.
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DOL's Retirement Security Rule Muddies Definitional Waters
The latest proposal changing how the Employee Retirement Income Security Act defines "investment advice," which the White House framed as a narrowly tailored regulation, would implement a sweeping regulatory overhaul that changes how the retirement services industry interacts with plans, participants and account owners, says Michael Kreps at Groom Law Group.