FLSA Statute Of Limitations Doesn't Preempt Competition Law Claims, Magistrate Says

SAN JOSE, Calif. - The shorter statute of limitations in the Fair Labor Standards Act (FLSA) does not require preemption of California unfair competition law (UCL) employment claims, a federal magistrate judge held April 9 (Douglas Roberts v. Trimac Transportation Services $(Western$) Inc., No. 12-5302...

Fiduciary Duty Claims Related To Alternative Investments Continue

SEATTLE - A federal judge in Washington on April 26 declined to dismiss claims that Morgan Stanley, a fiduciary of Weyerhaeuser Co.'s defined benefit pension plan, violated the Employee Retirement Income Security Act by investing in a large number of alternative investments that allegedly contributed...

Fiduciary Duty Claims Related To Wells Fargo's Securities Lending Program Continue

ST. PAUL, Minn. - A federal judge in Minnesota on June 4 ruled that Wells Fargo Bank N.A. is not entitled to summary judgment on claims that it breached its fiduciary duties under the Employee Retirement Income Security Act by investing the assets of ERISA plans in risky securities as part of its securities...

5th Circuit: Presumption Of Prudence Applies To Motion To Dismiss In ESOP Case

NEW ORLEANS - Participants in an employee stock ownership plan (ESOP) who alleged that the plan's fiduciaries breached their duties under the Employee Retirement Income Security Act by continuing to offer and hold company stock as an investment option failed to overcome the presumption of prudence...

Employees Reach Settlement With 2 High-Tech Employers On Conspiracy Claims

SAN JOSE, Calif. - Employees who allege that seven high-tech companies conspired to restrict the mobility of technical employees by entering into agreements not to compete for each other's employees told a federal judge in California on July 12 that they have reached an agreement with defendants...

2nd Circuit Affirms Dismissal Of Lehman Stock-Drop Case

NEW YORK - Lehman Brothers Holding Inc.'s former directors and benefit committee members did not breach fiduciary duties under the Employee Retirement Income Security Act by continuing to offer company stock as an investment option for Lehman's employee stock ownership plan (ESOP) before the...

Court Affirms Denial Of Certification Of Nurses' Competition Law Class Claims

SAN DIEGO - A trial court judge provided an appellate opinion as an alternative explanation for his ruling denying class certification of a California unfair competition law (UCL) claim but did not fail to address the claim, a state appeals court held July 17 (Juan Marcos Almaraz, et al. v. Sharp Healthcare...

Antitrust, Some ERISA Claims Dismissed From Wellpoint Reimbursement MDL

LOS ANGELES - A federal judge in California on July 19 dismissed antitrust and other claims alleging that WellPoint Inc. and other companies conspired to use a flawed database to set the rates for which out-of-network medical services (ONS) are reimbursed (In re: WellPoint Inc. Out-Of-Network "UCR"...

California Federal Judge Dismisses Conspiracy Claims Against Kaiser, Union

SAN DIEGO - A hospital system failed to allege that a managed care organization and its related entities conspired with a labor union to exclude competition in the markets for emergency and acute-care hospital services, a federal judge in California ruled July 25 (Prime Healthcare Services, Inc. v. Service...

Michigan Federal Judge Approves $3M Settlement In Flagstar Stock-Drop Case

DETROIT - A federal judge in Michigan on July 29 granted preliminary approval to a $3 million settlement of claims by Flagstar Bancorp Inc. 401(k) plan participants that the plan fiduciaries breached their duties under the Employee Retirement Income Security Act by offering company stock as an investment...

7th Circuit Addresses Class Certification In 401(k) Fiduciary Duty Breach Case

CHICAGO - The Seventh Circuit U.S. Court of Appeals on Aug. 7 reversed a district court's denial of class certification to participants in 401(k) plans on their claims that the plans' fiduciaries breached their duties under the Employee Retirement Income Security Act by investing in a stable...

No Monetary Relief For Breach Related To Alternative Investments, Judge Rules

SEATTLE - Participants in a defined benefit plan sponsored by Weyerhaeuser Co. have standing to pursue claims for injunctive relief but do not have standing to bring legal claims for monetary relief related to their allegations that the company and its investment managers violated the Employee Retirement...

Fiduciary Of Dewey & LeBoeuf 401(k) Plan: More Than $7.47M Claim Was Not Waived

NEW YORK - The fiduciary of the 401(k) plan of bankrupt law firm Dewey & LeBoeuf on Aug. 30 filed a brief supporting its proof of claim valued at more than $7.47 million on grounds that it has not waived its claim and no other entity has the authority to do so (In Re: Dewey & LeBoeuf, No. 12...

9th Circuit Declines To Rehear Opinion Vacating UCL Employment Case

WASHINGTON, D.C. - A Ninth Circuit U.S. Court of Appeals panel on Sept. 3 declined to rehear a case in which it decertified newspaper workers' California unfair competition law (UCL) class claims, withdrew its previous opinion and issued a new one remanding for reconsideration of commonality and...

Federal Judge Dismisses ERISA Stock-Drop Case Against SunTrust Banks Fiduciaries

ATLANTA - Fiduciaries of SunTrust Banks Inc.'s 401(k) plan did not breach their fiduciary duty of prudence under the Employee Retirement Income Security Act by retaining the plan's investment in company stock when the bank had exposure to subprime mortgage loan losses, a federal judge ruled Sept...

Judge: Conduct Allegedly Caused More Recording, Injury Under Competition Law

SAN JOSE, Calif. - An animal rights activist's allegations that circus employees' harassment necessitated longer recordings and forced her to purchase additional memory cards satisfies the California unfair competition law (UCL) injury standard, a federal judge held Oct. 4 (Shannon Campbell and...

9th Circuit: Incorporating SEC Filings By Reference Into SPD Is Fiduciary Act

SAN FRANCISCO - Participants in eligible individual account plans (EIAPs) sponsored by a drug manufacturer sufficiently alleged that the plans' fiduciaries breached their fiduciary duty of care imposed by the Employee Retirement Income Security Act by retaining company stock in the plans when the...

Class Certification Granted In Employees' Antitrust Suit Against High-Tech Companies

SAN JOSE, Calif. - A California federal judge on Oct. 24 granted a supplemental motion for class certification in an antitrust suit accusing high-tech companies of conspiring to fix and suppress employee compensation and to restrict employee mobility by entering into agreements not to compete for one...

9th Circuit: Ralphs Grocery's Arbitration Policy Is Unconscionable

PASADENA, Calif. - A grocery store chain's arbitration policy is unconscionable under California contract law and that state law is not preempted by the Federal Arbitration Act (FAA), the Ninth Circuit U.S. Court of Appeals ruled Oct. 28 (Zenia Chavarria, et al. v. Ralphs Grocery Company, No. 11...

U.S. High Court Hears Whistle-Blower Appeal Oral Arguments

WASHINGTON, D.C. - The whistle-blower protection provision of the Sarbanes-Oxley Act protects both contractors and subcontractors working for private companies employed by public companies, the attorney representing two workers told the U.S. Supreme Court in oral arguments on Nov. 12 (Jackie Hosang Lawson...

Bed, Bath & Beyond To Pay $415,000 To Settle Managers' Expenses Claims

SAN FRANCISCO - A California federal judge on Nov. 21 granted preliminary approval of a $415,000 settlement in a class complaint seeking reimbursement for managers employed by a chain of home goods stores who were not reimbursed when they used their personal vehicles for business purposes (Sean Boring...

2nd Circuit Upholds Ruling For Starbucks In Suit Over Tip Pool Participation

NEW YORK - The Second Circuit U.S. Court of Appeals on Nov. 21 affirmed a ruling that a coffee chain's policy of allowing shift supervisors to participate in tip pooling does not violate New York Labor Law Section 196-d (Jeana Barenboim, et al. v. Starbucks Corporation, No. 10-4912, 2nd Cir.; 2013...

High Court Will Consider Presumption Of Prudence In ERISA Stock-Drop Case

WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 13 agreed to review a Sixth Circuit U.S. Court of Appeals ruling that Fifth Third Bancorp and its employee stock ownership plan (ESOP) trustees breached their fiduciary duties under the Employee Retirement Income Security Act by continuing to offer company...

High Court Denies Review Of 7th Circuit's 401(k) Class Certification Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 16 denied review of a Seventh Circuit U.S. Court of Appeals ruling vacating denial of class certification to retirement plans' participants on their claims that the plans' fiduciaries breached their duties under the Employee Retirement Income...

California Federal Judge Remands Reimbursement Suit, Finds No Preemption Exists

SAN JOSE, Calif. - A California federal judge on Dec. 16 remanded a reimbursement dispute to state court, holding that the Employee Retirement Income Security Act did not preempt the state law claims (Bay Area Surgical Management v. United Healthcare Insurance Co., et al., No. 13-2512, N.D. Calif.; 2013...