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
Standing
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…
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…
Sub-Assignee Has Standing To Assert ERISA Claims
By Madeline Chimento Rea on
The Eleventh Circuit held that a sub-assignee’s claim for payment of a chiropractor’s bills against Blue Cross and Blue Shield of Florida were within the scope of ERISA and thus determined that the district court properly declined to remand the case to state court.