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...