In a ruling that upends conventional thinking on the standards for class certification of claims brought under ERISA section 502(a)(2), the Fourth Circuit overturned class certification of a lawsuit challenging the selection of 401(k) defined contribution plan investment funds. Trauernicht v. Genworth Fin. Inc., 2026 WL 667917 (4th Cir. Mar. 10, 2026). Drawing a
Damages
No Monetary Harm, No Foul? Not Quite, but American Airlines Not Required to Pay Any Monetary Damages in ERISA ESG Breach of Loyalty Case
By Mary Grace Richardson & Adam Scoll on
On September 30, 2025, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas issued a final judgment on damages in Spence v. American Airlines, Inc., No. 4:23-cv-552 (N.D. Tex. Sept. 30, 2025), which related to challenges that American Airlines and its employee benefits committee (“AA”) violated their ERISA fiduciary…
IRS Confirms California “Waiting Time Penalties” Are Not Wages For Federal Income Tax Purposes
By Sara C. Richland on
A recent IRS information letter confirms that “waiting time penalties” paid under California law are not wages for federal income tax withholding purposes. Section 203 of the California State Labor Code imposes penalties on employers that fail to pay final wages to terminated employees within a specified period of time. These penalties are paid to…
Court Awards $11.7M in Attorneys’ Fees In Fund Mapping Case
By Neil V. Shah on
The court in Tussey v. ABB Inc., No. 2:06-cv-04305 (W.D. Mo. Dec. 9, 2015), a long-running suit alleging that ABB failed to monitor recordkeeping fees and improperly mapped participants’ investments (previously reported on here), awarded class counsel $11.7 million in attorneys’ fees and affirmed its earlier award of $2.28 million in costs and…