News and Insights on the latest ERISA litigation trends for employers
ERISA litigation continues to expand in unprecedented fashion, reshaping the landscape for employers, plan sponsors, and service providers. As we move into 2026, all indications suggest that this trend will accelerate. Four lawsuits filed in late December may represent the beginning of a significant new wave of cases.
These four suits, filed by plaintiff’s firm…
ERISA class action litigation did not let up in 2025. Retirement plan fee litigation – which has dominated for several years – remained steady, with new, or in some cases refined, theories targeting 401(k) forfeitures and stable value fund performance. Additionally, this year saw a boom in litigation surrounding tobacco surcharges and continued litigation concerning…
Earlier this year, ERISA fiduciary breach defendant Parker-Hannifin filed a petition for a writ of certiorari to the United States Supreme Court that, if granted, could settle a circuit split created by the Sixth Circuit regarding the correct pleading standard for ERISA class actions challenging defined contribution plan investment performance. Johnson v. Parker-Hannifin, 122…
A Florida district court recently gave TECO Energy, Inc. another victory in an ERISA case when it dismissed Plaintiff’s proposed class action with prejudice. Roche v. Teco Energy, Inc., No. 8:23-cv-01571, 2025 U.S. Dist. LEXIS 95462 (M.D. Fla. May 20, 2025). The court found that Plaintiff’s amended complaint did not state a claim because…
The Sixth Circuit recently granted an employer win in an ERISA excessive fee case when it affirmed the dismissal of a proposed class action brought by current and former employees of DENSO International America, Inc., a manufacturer of auto parts. England v. Denso Int’l Am. Inc., No. 24-1360, 2025 U.S. App. LEXIS 10851 (6th Cir.
On April 17, 2025, the U.S. Supreme Court, in a unanimous opinion, resolved a circuit split and established a plaintiff-friendly pleading standard for ERISA prohibited transaction claims in Cunningham v. Cornell University, No. 23-1007.
Background
The plaintiffs in Cunningham accused Cornell’s retirement plans of engaging in prohibited transactions by paying excessive fees for recordkeeping…
Although the Department of the Treasury, Department of Labor, and Department of Health and Human Services believe that wellness programs are delivering on their promise of improving health and reducing costs, one type has recently become the ire of the plaintiffs’ bar: the tobacco surcharge. To date, plaintiffs have filed nearly 30 suits against plan…
Recent scrutiny of pharmacy benefit managers, also known as “PBMs,” has resulted in various lawsuits alleging that the high drug costs they charge violate ERISA. Among the first lawsuits in what appears to be a wave of new litigation against employers is Lewandowski v. Johnson & Johnson et al., No. 3:24-cv-00671, currently pending in…
On August 5, three Named Plaintiffs sued TIAA and Morningstar in the S.D.N.Y., claiming Defendants engaged in a “scheme to enhance corporate profits” by counseling participants to invest in two of TIAA’s most lucrative investment vehicles. Plaintiffs target ERISA and non-ERISA plans. The Complaint alleges TIAA and Morningstar developed an investment advisory tool – the…
In its recent decision in State of Utah v. Su, the Fifth Circuit remanded a challenge to the Department of Labor’s (DOL) environmental, social, and governance (ESG) rule for investing in defined contribution retirement plans after the Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo. In Loper Bright, the Supreme Court…
