A federal district court in New York recently granted Omnicom Group Inc.’s (“Omnicom’s”) motion to dismiss, for lack of Article III standing, claims challenging the offering of investment options in Omnicom’s 401(k) plan in which the plaintiff participants did not invest. The court denied Omnicom’s motion to dismiss, however, with respect to the remainder of
Standing
U.S. Supreme Court Holds ERISA Defined Benefit Plan Participants Without Monetary Losses Lack Article III Standing to Assert Breach of Fiduciary Duty Claims
By Russell Hirschhorn & Tulio Chirinos on
Earlier today, the U.S. Supreme Court affirmed a decision by the Eighth Circuit holding that ERISA plan participants lack Article III standing to sue for breach of fiduciary duty to recover investment losses in a defined benefit fund that was not underfunded. The Court concluded that the participants lacked a concrete stake in the dispute…
401(k) Plan Participant Cannot Pursue Claims on Behalf of Plans in Which She Did Not Participate
By Tulio Chirinos on
A federal district court in Ohio concluded that a 401(k) plan participant could assert fiduciary breach and prohibited transaction claims only on behalf of the plan in which she participated, and not on behalf of other plans. In this case, the plaintiff was a participant in Andrus Wagstaff, PC’s 401(k) plan, and she alleged that…
SDNY Rejects Class Standing and Fiduciary Breach Claims In Connection With Alleged Double-Charging Scheme
By Neil V. Shah on
A New York federal district court concluded that a defined benefit plan participant lacked standing to seek relief on behalf of plans other than the one in which he was a participant. In this case, plaintiff claimed that defendants breached ERISA fiduciary duties and engaged in prohibited transactions by charging undisclosed markups for securities trades.…
Sixth Circuit Holds Pecuniary Loss Not Required to Establish Standing In Benefit Claim
By Benjamin Flaxenburg on
The Sixth Circuit joined several other circuits in holding that a participant need not have actually incurred a financial loss in order to have standing to assert an ERISA claim for benefits under Section 502(a)(1)(B). Here, the plan participant arranged an air ambulance for his son in a non-emergent situation, but the plan refused to…
Third Circuit Analyzes Standing for ERISA Plan Management Claims
By Lindsey Chopin on
A recent Third Circuit decision reinforced the need for ERISA plaintiffs to plead injury-in-fact to establish Article III standing. In Krauter v. Siemens Corp., No. 17-1662, 2018 WL 921542 (3d Cir. Feb. 16, 2018), the plaintiff was a beneficiary of four pension plans that had been sponsored by Siemens. After the Plaintiff’s retirement, Siemens…
No Standing To Pursue Fiduciary-Breach Claim Where Plan Became Overfunded During Litigation
By Steven A. Sutro on
The Eighth Circuit held that defined benefit pension plan participants who alleged breach of fiduciary duty and prohibited transaction claims under ERISA lacked standing to assert their claims because, during the course of the litigation, the plan became overfunded. Plaintiffs brought suit after the plan lost $1.1 billion, which plaintiffs claimed arose from imprudent investments…
Ninth Circuit: Medical Providers Lack ERISA Standing
By Steven A. Sutro on
The Ninth Circuit affirmed two district court decisions that concluded medical providers were not “beneficiaries” under Section 502(a) of ERISA and therefore lacked standing to bring an ERISA claim. The Court explained that, in one case, the provider had an assignment from the participants, but the assignment was invalid because the plan contained a non-assignment…
Anti-Assignment Provision Bars Surgery Center’s $3.3 Million ERISA Benefits Claims
By Neil V. Shah on
A federal district court in California held that the ILWU-PMA Welfare Benefit Plan’s anti-assignment provision barred Brand Tarzana Surgical Institute’s claim for benefits and thus dismissed the Institute’s claim for benefits. In so holding, the court rejected the Institute’s argument that the plan waived the right to assert the anti-assignment provision as a defense by…
Defined Benefit Plan Participant’s Action Mooted by ERISA Plan’s Improved Financial Condition
By Neil V. Shah on
A federal district court in Minnesota dismissed a plan participant’s allegations that plan fiduciaries mismanaged a defined benefit plan — and thus caused it to be underfunded — because the plan’s financial condition improved during the course of the litigation. As reported here, the court previously held that these allegations were sufficient to establish…