As usual, the end of the federal court reporting period under the Civil Justice Reform Act (every March 31 and September 30) resulted in a slew of cases last week, which will likely continue into next week. It turns out federal judges are procrastinators just like the rest of us.

Fear not, however, as Your ERISA Watch was on top of it. No single case stood out, and there was only one appellate decision (from the Second Circuit, on the navel-gazing topic of “what is a plan asset anyway?” (Powell v. Ocwen Financial)), but there is plenty to chew on below.

Read on to learn about: (1) three medical benefit cases returning to the District of Utah after they were remanded to healthcare giant United Healthcare for further review, with diverging results (Anne A. v. United, Amy G. v. United, and D.B. v. United); (2) three cases asserting the misuse of forfeited plan contributions, with all three ending in predictable strikeouts for the plaintiffs (Gaetano v. MVHS, Estay v. Ochsner, Parker v. Tenneco); (3) two cases by disability benefit recipients complaining that Hartford Life & Accident Insurance Company miscalculated their benefits (Sakwa v. Hartford, Harling v. Hartford); (4) two cases asserting shenanigans in the valuation of employee stock ownership plans (Secretary of Labor v. Gleason, Daly v. West Monroe Partners); and last, but not least, (5) a monster healthcare provider case involving 63,390 claims of emergency medical care and $272,913,789 in billed services (South Austin Emergency Center v. Blue Cross Blue Shield of Texas). Maybe everything really is bigger in Texas!

Come back next week and see if the deluge continues…

Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Breach of Fiduciary Duty

Second Circuit

Gaetano v. MVHS, Inc., No. 6:25-CV-118 (AJB/CBF), 2026 WL 850360 (N.D.N.Y. Mar. 27, 2026) (Judge Anthony J. Brindisi). John Gaetano, Bertha Nogas, Kathi Martin, and Maryanne Taverne are former employees of Mohawk Valley Health System, Inc. (MVHS) and participants in the MVHS, Inc. 401(k) Plan, an ERISA-governed defined-contribution retirement plan. Plaintiffs allege that MVHS mismanaged the plan by failing to prudently select and monitor plan investments, charging excessive fees, and improperly using forfeited funds. Plaintiffs asserted four counts: (1) breach of fiduciary duties by failing to investigate alternative share classes and funds, failing to monitor recordkeeping fees, and improperly using forfeited funds; (2) breach of the duty of prudence by failing to monitor recordkeeping fees; (3) violation of ERISA’s anti-inurement provision; and (4) engaging in prohibited transactions by using forfeited accounts to lessen MVHS’ matching contributions. MVHS filed a motion to dismiss for lack of standing and failure to state a claim. The court tackled the standing issue first. It ruled that (a) Martin lacked standing for all claims as she was not a plan participant, (b) Taverne lacked standing for claims related to funds she did not invest in, and (c) all plaintiffs lacked standing for claims regarding the plan’s stable fund options because they did not invest in them. The court further determined that plaintiffs had standing for remaining claims related to the John Hancock Fund and the Harbor Fund, excessive recordkeeping fees, and improper use of forfeited funds, as these involved plan-wide mismanagement affecting all participants. The court ruled that plaintiffs had class standing to bring these claims as well, finding that “Plaintiffs’ incentives are aligned with those of the absent class members because they each allege they personally lost a portion of their retirement savings due to defendant’s challenged conduct.” This was a short-lived victory for plaintiffs, however, as the court ruled that they did not meet their pleading burden on the merits. The court found that (a) plaintiffs’ “conclusory” allegations did not provide sufficient factual support for their claims of imprudence regarding share class selection and recordkeeping fees, (b) the claims related to forfeitures were not viable because the plan explicitly allowed MVHS discretion in how to use forfeitures, and plaintiffs did not allege that they received less than what the plan promised, (c) the use of forfeitures to reduce employer contributions did not constitute a prohibited transaction under ERISA, and (d) the anti-inurement claim failed because plaintiffs did not allege that forfeited assets were removed from the plan or used for purposes other than paying obligations to the plan’s beneficiaries. As a result, while plaintiffs had standing to bring some of their claims, those claims were not pled sufficiently. Thus, MVHS’s motion was granted and the case was dismissed.

Powell v. Ocwen Financial Corp., No. 23-999, __ F. 4th __, 2026 WL 828159 (2d Cir. Mar. 26, 2026) (Before Circuit Judges Chin, Carney, and Sullivan). The six named plaintiffs in this case are trustees of The United Food & Commercial Workers Union & Employers Midwest Pension Fund. They invested in six classes of residential mortgage-backed securities (RMBSs), which are financial instruments pooling large amounts of residential loans. The trustees sued nineteen defendants, including Ocwen Financial Corporation, Ocwen Loan Servicing LLC, Ocwen Mortgage Servicing, Inc., and Wells Fargo Bank, N.A., alleging that they were responsible for servicing the underlying mortgages, mismanaged those loans, engaged in self-dealing, and failed to act in the best interests of their investors. The trustees contended that this conduct amounted to breaches of fiduciary duties and prohibited transactions under ERISA. The defendants filed a motion for summary judgment which the district court granted. The district court reasoned that while the RMBSs may have been plan assets, the mortgages underlying the plan’s investments were not. As a result, defendants were not liable under ERISA for any malfeasance in managing the mortgages. (Your ERISA Watch covered this ruling in our June 7, 2023 edition.) Plaintiffs appealed to the Second Circuit, which issued this published decision. The appellate court acknowledged that “identifying a plan’s assets is a critical step in identifying plan fiduciaries,” but, unhelpfully, “ERISA does not explicitly define what constitute ‘plan assets.’” Instead, Congress delegated this job to the Department of Labor, which enacted a regulation outlining a “general rule” that “when a plan invests in another entity, the plan’s assets include its investment, but do not, solely by reason of such investment, include any of the underlying assets of the entity.” However, the regulation also has a “look-through” exception, which extends ERISA’s fiduciary protections where the plan’s investment is in certain “equity interests.” The purpose of the exception is to include “‘investments that are vehicles for the indirect provision of investment management services’…such as ‘pooled investment funds[.]’” The question in this case was “whether the Plan’s investments in the six trusts are ‘equity interests’ under the DOL’s plan-asset regulation” and therefore qualified for the regulation’s “look-through” exception. The Second Circuit split the six RMBS classes into two groups: the “Indenture Trusts” and the “REMIC [real estate mortgage investment conduit] Trusts.” For the Indenture Trusts, the court affirmed the district court’s ruling that the notes issued by these trusts did not qualify as plan assets under ERISA. The notes were treated as indebtedness with no substantial equity features, and the mortgages backing these notes were not considered plan assets. The court emphasized that the notes reflected a traditional debt structure, exposing noteholders only to credit risks, not equity risks. However, the court arrived at a different conclusion regarding the REMIC trusts. The Second Circuit concluded that the regular-interest certificates issued by these trusts represented beneficial interests, thus qualifying as equity interests under the plan-asset regulation. Consequently, the mortgages underlying these certificates were considered plan assets. The court highlighted that the trust agreements clearly identified certificate holders as beneficiaries, entitling them to trust income, which aligned with the definition of a beneficial interest. Finally, the court briefly addressed the issue of Ocwen’s fiduciary status. Ocwen and Wells Fargo argued that “even if the mortgages are plan assets, we should nonetheless affirm the district court’s judgment on the alternative ground that Ocwen’s servicing of the mortgages does not qualify as a fiduciary function for purposes of ERISA.” However, the Second Circuit noted that the district court did not reach this issue and it declined to do so in the first instance. It therefore remanded “to allow the district court to consider in the first instance whether Ocwen acted in a fiduciary capacity with respect to the mortgages underlying the three REMIC trusts.”

Schultz v. Glens Falls Hosp., No. 1:25-CV-00581 (MAD/PJE), 2026 WL 850332 (N.D.N.Y. Mar. 26, 2026) (Judge Mae A. D’Agostino). Kimberley Schultz is an employee of Glens Falls Hospital and receives health insurance through the ERISA-governed Glens Falls Hospital Health Plan. Schultz alleges that under the plan she is assessed a “tobacco surcharge” of approximately $20 per paycheck, totaling $520 per year, which she must pay in order to maintain her insurance. Schultz contends that the plan violates ERISA’s statutory requirements and implementing regulations and thus brought this action asserting two claims for relief. First, Schultz alleged that the tobacco surcharge is unlawful because it is imposed without a wellness program, as required by ERISA, 29 U.S.C. § 1182. Second, Schultz alleged that the hospital breached its fiduciary duties to the plan and plan participants by imposing and collecting the allegedly unlawful surcharges, thereby violating 29 U.S.C. §§ 1104 and 1106. The hospital moved to dismiss, arguing that Schultz lacked Article III standing to bring her claims and that the complaint failed to state a claim. Addressing count one first, the court found that Schultz plausibly alleged a concrete injury for standing purposes because she asserted that she paid a tobacco surcharge that the hospital was not legally authorized to levy. The hospital argued that Schultz did not allege that she used tobacco, but “[w]hether Plaintiff uses tobacco is entirely irrelevant.” The court also dismissed the hospital’s argument that “even if there was a wellness program, Plaintiff would not have qualified,” because she suffered the $20 weekly injury “despite Defendant’s failure to implement any wellness program, as statutorily required.” As for the merits of count one, the court rejected the hospital’s argument that tobacco use is not a health status-related factor under Section 1182. The hospital also made arguments regarding what constituted a “reasonable alternative standard” under ERISA, but the court stated, “The glaring problem with Defendant’s arguments as to the merits of Count One is…there is no wellness program at all. As such, setting aside any interpretation of the Regulations, Defendant has failed to comply with ERISA’s statutory requirements entirely. Simply put, the Court cannot evaluate the technical compliance of a wellness program that does not exist, so Defendant’s reasonable alternative standards and notice arguments are irrelevant.” As for count two, the court ruled that Schultz had standing for the same reasons it found she had standing to bring count one. However, the court ruled that Schultz failed to plausibly allege that the plan suffered any losses from the hospital’s alleged fiduciary breaches, which was required because she was bringing her claim under Section 1132(a)(2). The court noted that individual injuries alone cannot support a Section 1132(a)(2) claim, and Schultz’s allegations of self-dealing did not demonstrate harm to the plan itself.  Additionally, the court found that Schultz’s argument regarding prohibited transactions was insufficient, as the complaint did not allege that the hospital retained the surcharge proceeds beyond the 90-day limitation for withheld wages to become plan assets. As a result, Schultz’s claim for unlawful imposition of a discriminatory surcharge will proceed, but her breach of fiduciary duty claim was dismissed.

Fifth Circuit

Anderson v. Southwest Airlines Co., No. 3:25-CV-0214-S, 2026 WL 820860 (N.D. Tex. Mar. 25, 2026) (Judge Karen Gren Scholer). The plaintiffs in this putative class action are participants in the ERISA-governed Southwest Airlines Co. Retirement Savings Plan. Plaintiffs contended that one of the funds in the plan, the Harbor Capital Appreciation Fund, an actively managed large-cap growth fund, “has chronically underperformed both similar comparator funds and its own self-selected target benchmark” over three-, five-, and nine-year periods. Plaintiffs argued that a prudent fiduciary would have removed the Harbor Fund from the plan by 2019. Plaintiffs alleged that Southwest and related defendants breached their fiduciary duties by retaining the Harbor Fund and failing to monitor fiduciaries to whom they delegated responsibilities. Defendants moved to dismiss, arguing that (1) plaintiffs cannot state a claim for breach of fiduciary duty based solely on underperformance, (2) plaintiffs did not plead any meaningful benchmarks, (3) plaintiffs cannot assert imprudence based on challenging a single fund, (4) other prudent investors selected the Harbor Fund, and (5) plaintiffs’ failure to monitor claim was derivative of its breach of fiduciary duty claim, and, in any event, “the Fifth Circuit has not recognized such a claim.” The court made short work of the motion in denying it. The court declined to adopt the “meaningful benchmark” requirement at the motion to dismiss stage, as neither the Supreme Court nor the Fifth Circuit has established such a requirement. Furthermore, the court stated there was “no binding precedent explaining what, exactly, a meaningful benchmark is,” and thus “the Court is left without a reliable standard to determine whether Plaintiffs’ proffered comparator funds are sufficiently similar to the Harbor Fund to constitute meaningful benchmarks.” The court further found that challenging a single fund does not preclude a breach of fiduciary duty claim because “the Fifth Circuit has not established any such rule, and courts in this circuit have refused to dismiss breach of fiduciary duty claims involving a single fund.” The court also noted that “[r]egardless of other investors’ decisions about the Harbor Fund, the Court concludes that Plaintiffs have adequately pleaded imprudence in the context of the Plan.” Finally, regarding the failure to monitor claim, the court found sufficient support for its existence and allowed it to proceed, as multiple district courts within the Fifth Circuit have recognized such claims. As a result, the case will continue as pled.

Estay v. Ochsner Clinic Foundation, No. CV 25-507, 2026 WL 809570 (E.D. La. Mar. 24, 2026) (Judge Jane Triche Milazzo). Plaintiffs Megan Estay and Francesca Messore are long-time employees of Ochsner Clinic Foundation and participants in Ochsner’s 401(k) retirement plan. They allege in this putative class action that Ochsner, as the sponsor of the plan, and the Retirement Benefits Committee, as the plan administrator, “breached their duties under ERISA when they used plan forfeitures to reduce Ochsner’s matching contribution obligation rather than defray the administrative expenses of the plan.” Under the plan, forfeitures occur when a participant’s employment is terminated before matching contributions from Ochsner vest. The plan allows these forfeitures to be used at the fiduciaries’ discretion to either pay administrative expenses or reduce future employer matching contributions. Plaintiffs argued that defendants consistently chose to use forfeitures to reduce Ochsner’s matching contributions, which was in Ochsner’s best interest rather than the participants’ best interest. They also claimed that the defendants failed to use the full forfeiture amounts and left some unused at the end of the year. Plaintiffs asserted several claims under ERISA, including breach of the duty of loyalty, breach of the duty of prudence, prohibited transactions under § 1106(a)(1) and (b)(1), and failure to monitor other fiduciaries. Defendants moved to dismiss, and in September of last year, the court granted their motion, ruling that defendants acted in compliance with the plan and ERISA by making a discretionary choice to allocate forfeitures to employer matches. (Your ERISA Watch covered this ruling in our September 24, 2025 edition.) However, the court gave plaintiffs leave to amend. They filed an amended complaint, which was followed by another motion to dismiss which the court evaluated in this order. Once again, the court granted defendants’ motion, this time with prejudice. The court found that the plan gave the defendants discretion to allocate forfeitures to reduce employer contributions or pay administrative expenses. The plaintiffs failed to establish a breach of loyalty because ERISA does not require fiduciaries to maximize profits, only to ensure participants receive promised benefits. The court also noted that plaintiffs’ theory would require forfeitures to be used for administrative expenses, creating an additional benefit not contemplated in the plan. The court noted that in its first ruling, it observed that “a majority of courts had reached the same conclusion. Since that time, the list of courts joining the majority continues to grow.” As for the duty of prudence, the court held that the plaintiffs did not allege specific facts indicating a flawed decision-making process. The court acknowledged plaintiffs’ “detailed factual allegations,” but “at bottom Plaintiffs still contend that an inference of imprudence is created when a fiduciary chooses to apply forfeitures to discretionary employer matching contributions over administrative fees. Without more, giving credence to such an inference would create a categorical rule that fiduciaries are always assumed to act imprudently when they apply forfeitures to discretionary employer matching contributions over administrative fees. This Court refuses to assume imprudence simply because Plaintiffs would have preferred a different outcome.” The court also rejected the claim that delays in utilizing forfeitures constituted imprudence, as the plan explicitly stated that forfeitures are to be “held in the Trust and will continue to share in the allocation of earnings” until an allocation decision was made. As for plaintiffs’ prohibited transaction claim, the court found that they failed to allege a “transaction” within the meaning of Section 1106. The use of forfeitures for employer contributions was an “intra-plan transfer” and not a transaction. Furthermore, the payment of administrative fees from participant accounts “surely does not implicate the sort of self-dealing contemplated by § 1106(b).” Finally, the court ruled that plaintiffs’ claim alleging failure to monitor was derivative of their other claims and thus failed for the same reasons. The court thus granted defendants’ motion and closed the case.

Sixth Circuit

Dawson v. Brookfield Asset Mgmt. LLC, No. 1:25-CV-00852-PAB, 2026 WL 835553 (N.D. Ohio Mar. 26, 2026) (Judge Pamela A. Barker). Simon Dawson, an employee of Brookfield Asset Management LLC and a participant in the Brookfield 401(k) Savings Plan, filed this putative class action against Brookfield and the plan’s investment committee. Dawson alleged that defendants selected and retained imprudent American Century Fund Target Date Funds (TDFs) despite the availability of more suitable options. He also alleged that defendants failed to monitor the fiduciaries responsible for the plan’s administration and management. Dawson’s complaint included two primary claims: (1) breach of the fiduciary duty of prudence under ERISA, and (2) failure to adequately monitor other fiduciaries under ERISA. He alleged that the American Century TDFs underperformed compared to their benchmarks and other large TDFs in the market, including those in the same Morningstar category. Dawson also highlighted the funds’ high turnover rates – i.e., how often the funds changed their investments – as a red flag that should have prompted further investigation by the fiduciaries. He claimed that these issues resulted in significant financial losses for the plan participants. Defendants filed a motion to dismiss for failure to state a claim. The court agreed with defendants that Dawson failed to allege sufficient underperformance of the American Century TDFs to infer imprudence. The court noted that the alleged underperformance was modest, with the funds generally showing positive returns despite slightly underperforming their benchmarks. The court emphasized that merely pointing to another investment that performed better over a short period does not suffice to plead an imprudent decision, as fiduciary duty focuses on the decision-making process rather than short-term results. The court specifically addressed Dawson’s comparisons to the S&P 500 Target Date Index, alleged Morningstar comparators, and alleged “Large TDF Comparator Funds.” It found that (a) the S&P Index was not an adequate comparator because the American Century TDFs were actively managed, and in any event the TDFs “had positive returns, and only slightly underperformed the S&P 500 Target Date Index,” (b) plaintiff’s allegations regarding the Morningstar comparators were “more robust,” but still did not demonstrate “meaningful underperformance,” and (c) the Large TDF Comparator Funds, like the Morningstar funds, did not demonstrate sufficient underperformance. Additionally, the court found that Dawson’s allegations of high turnover rates did not independently infer imprudence, especially given the lack of substantial underperformance. The court noted that high turnover rates, combined with underperformance, could suggest imprudence, but Dawson’s allegations did not meet this threshold. Finally, because Dawson’s duty-of-prudence claim failed, his derivative failure-to-monitor claim also failed. The court thus granted defendants’ motion to dismiss.

Gipson v. Medical Mutual of Ohio, No. 1:24-CV-00103, 2026 WL 836617 (M.D. Tenn. Mar. 26, 2026) (Judge William L. Campbell, Jr.). The plaintiffs in this case were all beneficiaries of an ERISA-governed medical insurance plan sponsored by Reserve National Insurance Company. The plan included a portability provision which allowed them to continue receiving benefits in the event of a change in employment or cancellation of the plan’s underlying group insurance policy. Plaintiffs obtained continuing coverage through this provision, and were undergoing cancer treatment, when they were notified that their coverage would end. This cancellation occurred shortly after Reserve National was acquired by Medical Mutual of Ohio. Plaintiffs brought this action contending that Reserve National and Medical Mutual, and their parent companies, Kemper Corporation and United Insurance Company of America, “collectively executed a plan to terminate substantially all of the ported group supplemental coverage Reserve National had in force on its books, in effect closing a book of business that was providing cancer and dread disease coverage to over 30,000 insureds.” Plaintiffs asserted their claims under 29 U.S.C. § 1132(a)(3), seeking declaratory and injunctive relief and payment of all benefits wrongfully withheld. Previously, defendants Kemper and United Insurance filed a motion to dismiss, which the court denied. (Your ERISA Watch covered this ruling in our July 23, 2025 edition.) In this order the court considered the motion to dismiss by the remaining two defendants, Reserve National and Medical Mutual. They sought dismissal under Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction and under Rule 12(b)(6) for failure to state a claim. The court quickly dispensed with the jurisdictional argument, agreeing with plaintiffs that regardless of whether ERISA governed the plan at issue, it had diversity jurisdiction and the case satisfied the requirements of the Class Action Fairness Act. The court found that the class exceeded 100 members, was minimally diverse, and had an amount in controversy exceeding $5,000,000. Next, the court addressed defendants’ arguments regarding equitable relief. They contended that plaintiffs were impermissibly attempting to “repackage denial-of-benefit claims as claims for equitable relief,” and thus plaintiffs’ claims would be better adjudicated under Section 1132(a)(1)(B). The court disagreed, noting that plaintiffs’ claims were “based on the alleged wrongful termination of coverage in violation of plan terms, not claim adjudication… Here, Plaintiffs allege an injury beyond the mere non-payment of claims. They allege injury from the cancellation of their policies while undergoing approved treatment.” Thus, while this injury may have resulted in denied claims, “the Court is not persuaded that Section 1132(a)(1)(B) provides an adequate remedy for the injury alleged by Plaintiffs[.]” The court further found that plaintiffs’ requested remedy, a constructive trust, constituted appropriate equitable relief. Second, defendants argued that plaintiffs could not sue them for breach of fiduciary duty because they were not acting as fiduciaries when they terminated ported group supplemental coverage under the plan. The court rejected this argument as well. The court stated that the decision to terminate coverage directly related to defendants’ obligations under the plans and constituted an exercise of control over plan management or assets. As a result, the court denied defendants’ motion to dismiss.

Parker v. Tenneco, Inc., No. 23-10816, 2026 WL 852046 (E.D. Mich. Mar. 27, 2026) (Judge Judith E. Levy). This case, which has been up to the Sixth Circuit and back, is a putative class action concerning two retirement plans: the DRiV Plan and the Tenneco Plan, which merged into a single Tenneco Plan in July of 2022. The named plaintiffs, Tanika Parker and Andrew Farrier, are participants in the plans who contend that the defendants, fiduciaries under the plans, breached their fiduciary duties under ERISA by mismanaging the plans. Plaintiffs have named 46 defendants, including company sponsors, boards of directors, committees that administered the plans, and individuals who are members of those boards or committees. Plaintiffs contend that defendants failed to replace target date mutual funds with less expensive collective trust versions, chose recordkeeping service providers that charged excessive fees, used forfeited funds to reduce company contributions instead of participant fees, failed to replace investment options with less expensive alternatives, failed to offer the lowest-cost share classes, and chose managed account service providers that charged excessive fees. Defendants filed a motion to dismiss plaintiffs’ second amended complaint. In this order the court granted their motion in part and denied it in part. The court addressed plaintiffs’ forfeiture claims first, ruling that there was no breach of fiduciary duty because plaintiffs “have not provided any context or circumstances related to Defendants’ financial status or actions” that would make defendants’ forfeiture decisions imprudent. Furthermore, defendants’ use of forfeitures for company contributions was not a prohibited transaction because it was not a “transaction” under 29 U.S.C. § 1106(a)(1)(A) or § 1106(b)(1): “The use of forfeitures for company contributions is not a sale, exchange, or lease of property.” Nor did this violate ERISA’s non-inurement provision because the forfeited assets at issue never left the plans; the forfeitures “remain in the Plans and are still being used to ‘provid[e] benefits to participants in the plan.’” Next, the court addressed plaintiffs’ excessive fee claims. The court dismissed several of these due to insufficient allegations. For example, plaintiffs failed to allege adequate comparators for recordkeeping fees and the DRiV plan’s managed account services. However, the court found plaintiffs’ allegations sufficient and allowed claims to proceed relating to the T. Rowe Price Mutual Funds in both plans, the DRiV Plan’s single class investments and Vanguard index funds, and the failure to obtain lower-cost share classes in the DRiV plan. Finally, the court reconsidered a prior order and allowed plaintiffs to include failure to monitor claims in the case for certain defendants, finding that plaintiffs had sufficiently alleged that these defendants controlled or oversaw other fiduciaries who allegedly breached their duties.

Eleventh Circuit

Secretary of Labor v. Gleason Research Assocs., Inc., No. 5:24-CV-01352-MHH, 2026 WL 852129 (N.D. Ala. Mar. 27, 2026) (Judge Madeline Hughes Haikala). Gleason Research Associates, Inc. is an engineering and scientific consulting company that provides services to the government. In 2015 Gleason established an employee stock ownership plan (ESOP) which acquired 100% of Gleason’s outstanding shares for approximately $21.5 million, financed through a loan from Gleason. The ESOP committee, consisting of Charles Vessels, James Kelley, and Brenda Showalter, was appointed to manage the ESOP. Later, new stock was issued, and the Department of Labor contends all three members of the committee breached their fiduciary duties of loyalty and prudence under ERISA as fiduciaries and plan administrators of the ESOP by profiting from the purchase and sale of the new shares at the expense of ESOP participants. The DOL further claims that Gleason, as the plan administrator, failed to monitor the three fiduciaries. The complaint asserts that defendants engaged in self-dealing and authorized transactions that diluted the equity interests of plan participants without adequate compensation. Additionally, the DOL alleges that the defendants caused Gleason to redeem warrants and stock appreciation rights at inflated prices, harming the ESOP’s economic interests. Defendants moved to dismiss for failure to state a claim. The court found that the DOL properly pled that Vessels, Kelley, and Showalter owed fiduciary obligations to the ESOP and its participants and beneficiaries, as they were appointed to the ESOP Committee and acknowledged their fiduciary roles. The court determined that the DOL’s allegations raised a reasonable expectation that discovery would reveal evidence of wrongdoing, and the DOL sufficiently alleged that the defendants breached their fiduciary duties by prioritizing their financial gain over the interests of the ESOP participants. Additionally, the court held that the claims for co-fiduciary liability against Kelley and for failure to monitor against Gleason were derivative of the primary fiduciary breach claims and should proceed. As a result, the court denied defendants’ motion.

Class Actions

First Circuit

Adams v. Dartmouth-Hitchcock Clinic, No. 22-CV-099-LM, 2026 WL 821803 (D.N.H. Mar. 25, 2026) (Judge Landya McCafferty). The plaintiffs in this case are participants in the Dartmouth-Hitchcock Retirement Plan and the Dartmouth-Hitchcock Employee Investment Plan, which are ERISA-governed employee retirement plans. They filed this putative class action in 2022 alleging that the Clinic and related defendants breached their fiduciary duties in managing and monitoring the plans. These failures allegedly led to excessive administrative costs and imprudent investment decisions. Defendants filed a motion to dismiss, but the court denied it. The parties subsequently conducted discovery, negotiated with the assistance of an independent mediator, and reached a settlement. Before the court here was plaintiffs’ unopposed motion seeking preliminary approval of the parties’ proposed class action settlement agreement and preliminary certification of the proposed class for settlement purposes. The court granted the motion, finding that the proposed settlement was likely to be fair, reasonable, and adequate. The settlement was negotiated at arm’s length with the assistance of a mediator after conducting extensive discovery. The settlement amount of $850,000 was “significantly less than what plaintiffs originally estimated their damages to be (over $10,000,000),” but “plaintiffs represent that information learned during discovery and the uncertainty of ongoing litigation has the potential to reduce plaintiffs’ recovery significantly, if not completely.” As a result, the court deemed the settlement reasonable given the potential risks and costs of continued litigation. As for class certification, the court determined that the class met the requirements of Rule 23(a) and Rule 23(b)(1)(B). The class was sufficiently numerous, with over 31,000 participants, and shared common legal and factual questions regarding the defendants’ alleged fiduciary breaches. The claims of the class representatives were typical of the class, and there were no conflicts of interest. The court also found that Capozzi Adler, P.C., the proposed class counsel, was qualified and experienced. The court was concerned with the agreement’s provision regarding class counsel’s attorney fees, which would “amount to no more than one-third of the Gross Settlement Amount.” The court “does not find this percentage to be per se unreasonable, but it notes that such a figure, under the circumstances of this case, gives the court some pause.” Thus, the court indicated that while it would preliminarily approve the proposed fees, it would probe this number further at the upcoming fairness hearing. Finally, the court approved Analytics LLC as the settlement administrator and agreed to the parties’ proposed notices to class members, with some minor corrections to better inform class members of their due process rights.

Seventh Circuit

Daly v. West Monroe Partners, Inc., No. 21 CV 6805, 2026 WL 851252 (N.D. Ill. Mar. 27, 2026) (Judge John Robert Blakey). Matthew Daly was employed by West Monroe Partners, Inc., a digital consulting firm, and was a participant in the West Monroe Employee Stock Ownership Plan, a defined contribution plan governed by ERISA. The plan was designed to invest primarily in company stock and hold that stock in a trust for the benefit of plan participants. Argent Trust Company acted as the plan’s trustee. In April of 2021, Argent Trust completed an annual valuation of the company stock held by the plan, which Daly alleges was too low. Based on this valuation, the value of company stock as of December 31, 2020, was announced to be $515.18 per share. Daly left the company in November of 2020 and elected to take a distribution of his account balance between June and August of 2021. In October of 2021, West Monroe sold 50% of the company to MSD Partners, L.P. at a price of $1,616 per share. The Plan was terminated in November of 2021, and remaining participants received the higher price for their shares. Daly brought this suit against the company, Argent Trust, and other defendants alleging that they breached their fiduciary duties under ERISA by failing to conduct a prudent valuation of the stock in 2020, failing to ensure participants received fair market value for their stock, and failing to disclose material facts to beneficiaries. Before the court here was Daly’s motion for class certification. The court granted Daly’s motion under Rule 23(b)(1). The court found that the proposed class satisfied all four requirements of Rule 23(a): numerosity, commonality, typicality, and adequacy of representation. Specifically, the class was numerous with 146 members, common questions of law or fact existed because defendants’ conduct was uniform with regard to all class members at the time of the 2020 valuation, Daly’s claims were typical of the class, and he could adequately represent the class. Defendants argued that Daly was motivated by animus and thus would not serve as a good class representative, but the court was unimpressed by Daly’s comments, stating that “[c]ases invalidating a plaintiff’s ability to represent a class based upon animus require far more severe expressions of animosity than what Plaintiff’s comments exhibit.” Next, the court concluded that the claims were suitable for class treatment under Rule 23(b)(1) because adjudication of Daly’s suit would be dispositive of the interests of other participants, and separate actions would impair the ability of other participants to protect their interests. Defendants argued that Daly was “‘not seeking to represent the Plan as a whole’ as required by § 502(a)(2) and is not a suitable representative of the plan under the same section because of ‘potential conflict with the interests of other participants in the Plan.’” However, the court ruled that these arguments were foreclosed by precedent, which allowed Daly to represent only a portion of plan participants, and thus no intra-class conflict existed. Finally, the court noted that 33 members of the class had signed class action waivers. The court found that these waivers were valid and enforceable, and not void under the effective vindication doctrine because that doctrine only applied to arbitration waivers, whereas the waivers in this case arose from employment termination agreements. As a result, the court excluded the 33 employees from the class, which was certified as follows: “All participants in the Plan who received a distribution in an amount determined based on the 2020 Valuation of Company stock who did not sign a class action waiver as part of any employment termination agreement with Company.”

Disability Benefit Claims

Second Circuit

Bianchini v. The Hartford Life and Accident Ins. Co., No. 24-CV-6535 (JGLC), 2026 WL 810303 (S.D.N.Y. Mar. 24, 2026) (Judge Jessica G.L. Clarke). Chiara Bianchini was a director of digital marketing and social media advertising at Blackstone Administrative Services Partnership, L.P. She contracted COVID in 2020 and 2022, subsequently experiencing symptoms of long COVID, which included extreme fatigue, headaches, blurred vision, heart palpitations, and cognitive impairments. Bianchini filed a claim for short-term disability benefits under Blackstone’s ERISA-governed employee disability benefit plan, which was insured by Hartford Life and Accident Insurance Company. Hartford denied it. Bianchini subsequently submitted a claim for long-term disability benefits, which Hartford also denied, citing a lack of restrictions or limitations preventing her from performing sedentary work. Bianchini appealed this decision in June of 2024, submitting new evidence. Before Hartford rendered a final decision on the appeal, Bianchini filed this action, asserting a single claim for long-term disability benefits under 29 U.S.C. § 1132(a)(1)(B). Hartford filed a motion for summary judgment, arguing that Bianchini failed to exhaust administrative remedies, while Bianchini filed a motion to supplement the administrative record with live testimony at trial. Addressing Hartford’s motion first, the court found that Hartford violated ERISA’s claims procedure regulation by improperly tolling its appeals determination deadline and failing to properly extend its determination deadline. The court emphasized that Hartford could not toll the deadline while it was waiting on information from third parties: “Fairness…requires that ‘a claimant’s appeal is not stalled indefinitely while the plan seeks information from third parties beyond the claimant’s control.’” Thus, Hartford’s self-granted 45-day extension of its determination deadline was also incorrect because it was based on its tolling calculation error. The court further found that these procedural violations were not for good cause or due to matters beyond Hartford’s control. Thus, Hartford failed to comply with ERISA’s claim regulation and “[a]ccordingly, Hartford’s violations deemed Plaintiff’s administrative remedies exhausted.” The court then moved on to Bianchini’s motion, which was also unsuccessful. The court ruled that Bianchini did not demonstrate good cause to supplement the administrative record with live testimony. The court found that neither Hartford’s structural conflict of interest as both claims administrator and payor nor its procedural deficiencies adversely affected the development of the administrative record. The court noted that the requested testimony would not introduce new factual material but would only assess credibility and clarify existing evidence, which did not warrant supplementation. As a result, both parties’ motions were denied, and the court directed the parties to meet and confer regarding setting the case for trial.

Pistilli v. First Unum Life Ins. Co., No. 24 CIV. 5266 (AKH), 2026 WL 836647 (S.D.N.Y. Mar. 26, 2026) (Judge Alvin K. Hellerstein). Lia Pistilli brought this action asserting that First Unum Life Insurance Company wrongly denied her claim for benefits under her employer’s ERISA-governed long-term disability benefit plan. On October 3, 2025, the court evaluated the parties’ cross-motions for judgment and found that Unum did not act arbitrarily or capriciously in denying her claim. (Your ERISA Watch covered this ruling in our October 8, 2025 edition.) Pistilli has appealed this ruling to the Second Circuit. Meanwhile, on November 15, 2025, Pistilli was awarded disability benefits by the Social Security Administration (SSA). Pistilli filed a motion for relief from judgment based on this award under Federal Rule of Civil Procedure 60(b)(2), or, alternatively, an indicative ruling pursuant to Rule 62.1(a)(3). In this order the court denied Pistilli’s motion. The court stated that it lacked jurisdiction over the Rule 60(b) motion because Pistilli had already filed an appeal. As for Rule 62.1(a), the court explained that it would deny this motion as well because the SSA decision did not exist at the time of the trial and thus did not constitute “newly discovered evidence.” Additionally, the court determined that even if the SSA decision were considered to be newly discovered evidence, it would not change the outcome because “[t]he SSA took the same set of facts and reached a different conclusion on a different standard of analysis. Such an administrative body’s conclusion has no bearing on my assessment and determination on the facts presented to me and would not, and does not, change my decision.” Pistilli also attempted to frame her claim under Rule 60(b)(6), a catchall provision for relief from judgment. However, the court found this unavailing because the reasons for relief could be considered under the more specific Rule 60(b)(2). Even if considered under Rule 60(b)(6), the court concluded that the SSA decision would not have altered the litigation’s outcome for the reasons it already identified. As a result, Pistilli’s motion was denied and she will have to obtain relief from the Second Circuit.

Seventh Circuit

Sakwa v. Hartford Life & Accident Ins. Co., No. 1:25-CV-04546, 2026 WL 822460 (N.D. Ill. Mar. 25, 2026) (Judge Sharon Johnson Coleman). Stuart H. Sakwa was an equity partner at the venerable Chicago law firm of Arnstein & Lehr LLP and was covered under the firm’s ERISA-governed long-term disability benefit plan, which was insured by Hartford Life and Accident Insurance Company. Sakwa became disabled in January of 2013 and was approved for benefits under the plan by Hartford. His benefits were calculated based on his Pre-Disability Earnings (PDE) and Current Monthly Earnings (CME), with the policy excluding contributions to 401(k) and Keogh retirement plans from the definition of “earnings.” However, from 2013 to mid-2018, Hartford included these contributions in its calculations, which increased both PDE and CME, and thus increased Sakwa’s benefits. This was the result of “numerous conversations and written exchanges discussing how Sakwa’s CME would be calculated,” and was memorialized in two 2014 letters from Hartford to Sakwa. However, in 2018 Hartford changed its methodology without notice, claiming it had overpaid Sakwa for the 2016 tax year because his CME should have been calculated without including his 401(k) contributions. Meanwhile, confusingly, it continued to use the original methodology to pay his ongoing benefits. Several appeals by Sakwa and decisions by Hartford followed, during which Hartford advanced new arguments and backtracked on previous arguments. Ultimately, Sakwa filed this action under ERISA, alleging two counts: one for breach of fiduciary duty because Hartford did not consider his 2020 appeal, and one challenging Hartford’s calculation of his monthly disability benefits. Hartford filed a motion to dismiss Sakwa’s first claim based on “(1) ERISA’s three-year statutory limitations period; (2) the Plan’s contractual three-year limitations period; and (3) preclusion under § 1132(a)(3) because the statute provides an adequate remedy.” Hartford contended that Sakwa had “actual knowledge of the alleged breach no later than April 22, 2020 – the date Hartford refused to consider his further appeal,” and thus his first claim was time-barred. The court agreed, ruling that there is “no question that Sakwa became aware of the relevant information on that date,” and thus his claim was late. Additionally, the court found that Sakwa’s equitable relief claim was duplicative of his second count, as an adequate remedy was available under § 1132(a)(1)(B), thus “foreclosing recourse to the catchall provision as a matter of law.” The court then turned to Sakwa’s second claim, which Hartford sought dismissal of because Sakwa “failed to exhaust his administrative remedies by not appealing Hartford’s December 6, 2022 benefit determination within the Plan’s 180-day window.” The court determined that “Sakwa had already exhausted his administrative remedies before filing suit” because Hartford’s April 25, 2022 letter confirmed that its decision “is now final as administrative remedies available under the Policy have been exhausted.” The court stressed that “Hartford cannot represent to a claimant that his administrative remedies have been exhausted, then argue in litigation that the claimant failed to exhaust those remedies.” Furthermore, the court ruled that the December 2022 letter “was not a substantive resolution of the underlying dispute, but instead a ‘correction’ of an arithmetic error that Hartford itself identified without reopening the administrative process.” In any event, “Sakwa was not required to file that appeal because doing so would have been futile” given the unresolved issues over the preceding nine years. As a result, Sakwa will not be able to continue with his breach of fiduciary duty claim, but his claim for recalculation of benefits will proceed.

Ninth Circuit

Gupta v. Intel Short-Term Disability Plan, No. 25-CV-00871-NC, 2026 WL 821590 (N.D. Cal. Mar. 25, 2026) (Magistrate Judge Nathanael M. Cousins). Udit Gupta was employed as a Cloud Software Development Engineer at Intel, where he was covered by Intel’s ERISA-governed short-term disability (STD) and long-term disability (LTD) benefit plans, which were administered by Reed Group LLC. The STD benefits included two plans: the Short Term Disability Plan (STD Plan) and the California Voluntary Short Term Disability Plan (CA-VSTD Plan). From February to September of 2022, Gupta was approved for leave under these plans, supported by medical records from his psychiatrist, chiropractor, and acupuncturist. However, in October of 2022, Reed terminated Gupta’s STD Plan and CA-VSTD Plan benefits on the ground that his medical records no longer demonstrated disability. Gupta appealed the STD Plan denial, but Reed upheld its decision after further evaluations. In August of 2023, Gupta’s counsel initiated an LTD claim, which Reed denied on the ground that Gupta did not satisfy the 52-week elimination period because of the denial of his STD claims. Gupta filed suit under ERISA against Intel, the plans, and other defendants, alleging improper denial of benefits and breach of fiduciary duty. The parties filed cross-motions for judgment under Federal Rule of Civil Procedure 52 which the agreed-upon magistrate judge ruled on in this order. First, the court agreed with defendants that Gupta failed to exhaust administrative remedies by not appealing the denial of his CA-VTSD Plan benefits to the California Employment Development Department, as required by the plan. Second, the court granted Gupta judgment on his claim for STD Plan benefits. The court agreed with defendants that the abuse of discretion standard of review applied because the plan unambiguously conferred discretion on Reed to determine benefit eligibility. The court also agreed that Reed used a reasonable job description in evaluating Gupta’s claim. However, the court found that Reed abused its discretion by improperly dismissing the opinions of Gupta’s treating physicians in favor of its consulting experts’ paper reviews. The court criticized Reed’s medical reviewers, noting that they “did not attempt to contact Plaintiff’s providers,” “did not appreciate that Plaintiff was being treated by a psychiatrist,” inappropriately offered opinions outside their areas of expertise, and did not “explain what evidence supports their conclusions regarding Plaintiff’s ability to work.” The court determined that remand was unnecessary and ordered defendants to pay Gupta STD Plan benefits. As for Gupta’s LTD claim, the court noted that its decision on the STD Plan benefits undermined the support for Reed’s LTD denial as well. Furthermore, “[t]he Court lacks evidence regarding Plaintiff’s condition past February 2023 and, even if it did have that evidence, it would be improper to evaluate it and make an LTD determination.” Thus, the court remanded to Reed for further consideration. Finally, the court granted defendants summary judgment on Gupta’s claim for breach of fiduciary duty, finding that the Intel defendants were not fiduciaries and that Gupta’s claim was duplicative of his claim for benefits. The court ordered the parties to meet and confer regarding its ruling and submit a joint report.

Serrata v. Unum Life Ins. Co. of Am., No. 24-CV-02421-HSG, 2026 WL 849298 (N.D. Cal. Mar. 27, 2026) (Judge Haywood S. Gilliam, Jr.). Edward R. Serrata was working for Sherwin Williams Company as a salesman when, in 2006, he was diagnosed with multiple sclerosis (MS) after experiencing vision issues. Serrata continued working until 2011, when his MS symptoms, including fatigue, leg pain, weakness, and further vision problems, made it difficult for him to perform his job duties. He applied for and received benefits under Sherwin Williams’ ERISA-governed employee disability benefit plan. First, he received short-term disability benefits, which were converted in 2012 to long-term disability (LTD) benefits by the plan’s insurer and claim administrator, Unum Life Insurance Company of America. However, in 2023 Unum terminated Serrata’s LTD benefits, claiming he was not disabled from performing a sedentary occupation. Serrata appealed, but Unum upheld its decision in 2024 and thus Serrata filed this action. In his complaint Serrata contended that his benefits were wrongfully terminated; he sought benefits from the date of termination to the date of judgment. The parties filed cross-motions for judgment under Federal Rule of Civil Procedure 52, and agreed that the default de novo standard of review applied. The court granted Serrata’s motion for judgment and denied Unum’s. The court found that Serrata met his burden of proving by a preponderance of the evidence that he was disabled from any gainful occupation at the time his LTD benefits were terminated. The court credited the opinions of Serrata’s treating neurologist, Dr. Kriseman, and Dr. Cassini, a neurologist with extensive experience in treating MS patients, who both concluded that Serrata’s MS symptoms precluded him from performing sedentary occupational demands on a full-time basis. The court also noted that Unum had paid Serrata LTD benefits for more than nine years under the applicable “any gainful occupation” standard, which supported the conclusion that he continued to be disabled. The court rejected Unum’s reliance on a form completed by Dr. Kriseman on March 10, 2023, which indicated Serrata could perform sedentary work, as Dr. Kriseman later clarified that she did not intend to suggest Serrata was no longer disabled. The court also found that Unum’s conclusions about Serrata’s activity level, MRI stability, and treatment were not sufficient to justify the termination of benefits. Additionally, the court gave minimal weight to the opinions of Unum’s retained physicians, who concluded Serrata could perform sedentary work, because their assumptions were unsupported and they did not consider all relevant evidence. Ultimately, the court concluded that Serrata was unable to perform any gainful occupation due to his MS symptoms, and Unum erred in terminating his benefits. The court directed the parties to meet and confer regarding the filing and briefing schedule for any motion for attorneys’ fees and costs.

Eleventh Circuit

Harling v. Hartford Life & Accident Ins. Co., No. 6:24-CV-1237-ACA, 2026 WL 837100 (N.D. Ala. Mar. 26, 2026) (Judge Annemarie Carney Axon). Evelyn Harling receives benefits under an ERISA-governed long-term disability benefit plan insured by Hartford Life and Accident Insurance Company. Harling was also approved by the Social Security Administration for two benefits: a disability benefit and a benefit for disabled widows. After approving Harling’s claim, Hartford calculated her benefits by only offsetting the primary benefit, and not the disabled widow benefit, even though the plan arguably allowed it to offset both. In February of 2024, after extensive communication on the issue, Hartford informed Harling that both offsets applied and she had been overpaid by over $16,000. Hartford requested reimbursement. Harling then filed this action to prevent Hartford from recovering the funds and reducing her future payments. The parties filed cross-motions for summary judgment which were decided in this order. The court addressed the standard of review first, determining that the arbitrary and capricious standard of review applied because the plan granted Hartford discretion to determine eligibility for benefits and to interpret the policy terms. Harling argued that the de novo standard should apply because (a) the case involved interpretation of statutory definitions, (b) Hartford offered “post hoc” rationales for its decision, and (c) Hartford did not give her a full and fair review. The court disagreed, ruling that (a) Hartford did not incorporate statutory definitions in the policy, (b) post hoc rationales do not change the standard of review, and (c) Harling did not explain how she was prejudiced by Hartford’s alleged failure to provide documentation. On the merits, the court ruled that Hartford’s determination that the disabled widow’s benefit qualified as an offset was reasonable. The policy defined “Other Income Benefits” to include “disability benefits under…the United States Social Security Act,” and thus it was reasonable for Hartford to interpret the disabled widow’s benefit as a “disability benefit” under this definition. Harling made several arguments for why the court should rule in her favor despite this finding, but the court found them unpersuasive. First, the court rejected Harling’s argument that Hartford’s correction of its overpayment constituted a reconsideration of its initial decision. The court found that Hartford’s initial determination letter informed Ms. Harling that her benefits were subject to an offset due to both Social Security benefits, and Hartford’s “invocation of the error provision” to recover the offset payments was not a new determination. Second, the court dismissed Harling’s equitable arguments, including the voluntary payment doctrine, laches, and misrepresentation. The court noted that ERISA federal common law, not state law, governed the action, and Ms. Harling failed to provide sufficient evidence or federal case law to support her claims under these doctrines.  Finally, the court rejected Harling’s argument that the widow’s benefit is not an offset now that she has turned 60, and her claim for equitable estoppel. The court found the first argument premature, and the second was unviable because the policy was not ambiguous and the written representations from Hartford contradicted her position. As a result, the court granted Hartford’s summary judgment motion and denied Harling’s.

Medical Benefit Claims

Sixth Circuit

James L.W. v. American Health Holding, Inc., No. 1:25-CV-239, 2026 WL 849864 (S.D. Ohio Mar. 27, 2026) (Judge Mathew W. McFarland). James L.W. is an employee of Meyer Tool, Inc. and a participant in Meyer’s self-funded ERISA-governed employee health benefit plan. James’ minor child, K.W., is a beneficiary of the plan. In 2022 and 2023 K.W. received inpatient psychiatric care at a facility in Utah. Plaintiffs requested coverage and reimbursement from the plan for these services, but it only approved benefits for part of K.W.’s treatment. Plaintiffs unsuccessfully appealed and then filed this action against Medical Benefits Administrators, Inc. (MedBen), the plan’s “benefit manager,” and American Health Holding, Inc. (AHH), the plan’s “utilization review service.” Plaintiffs asserted claims for recovery of benefits under ERISA pursuant to 29 U.S.C. § 1132(a)(1)(B) and for violation of the Mental Health Parity and Addiction Equity Act (MHPAEA) pursuant to 29 U.S.C. § 1132(a)(3). MedBen and AHH filed motions to dismiss. MedBen’s motion was based on failure to state a claim under Federal Rule of Civil Procedure 12(b)(6), while AHH’s motion was based on lack of subject matter jurisdiction under Rule 12(b)(1). The court applied the Rule 12(b)(6) standard to both motions, and first addressed defendants’ argument that “they lack control over the administration of the Plan and are not Plan fiduciaries, meaning they also are not proper defendants with regard to both claims asserted in the Complaint.” The court rejected this argument and found that the complaint plausibly alleged that MedBen and AHH were ERISA fiduciaries. Although Meyer was named in the plan as the plan administrator, MedBen and AHH had roles that involved discretionary authority over claims decisions, which could plausibly qualify them as fiduciaries. Plaintiffs alleged that MedBen “was responsible for supervision of the management, consideration, investigation, and settlement of claims,” while AHH “was responsible for determining whether to grant Plan beneficiaries pre-admission certification for inpatient care at a covered facility,” and “determining whether to review the medical necessity of continued inpatient care for a Plan beneficiary.” Both entities allegedly “sent Plaintiffs letters responding to concerns, explaining benefits, and relaying final decisions.” The court noted that fiduciary status under ERISA is not limited to those explicitly listed as plan administrators but also includes those exercising discretionary authority over plan management, and thus plaintiffs’ allegations were satisfactory. As for plaintiffs’ MHPAEA claim, the court rejected MedBen’s effort to dismiss it as duplicative of plaintiffs’ claim for benefits. MedBen argued that “the claims cannot proceed together because they stem from the same injury,” but the court focused on remedies rather than common facts. The court noted that dismissal of a § 1132(a)(3) claim as duplicative is only warranted where § 1132(a)(1)(B) provides a full remedy for the alleged injuries. Here, the MHPAEA claim sought remedies unavailable under § 1132(a)(1)(B), such as addressing violations of ERISA itself rather than enforcing plan terms. As a result, the court denied defendants’ motions in their entirety and the case will proceed.

Tenth Circuit

Anne A. v. United Healthcare Ins. Co., No. 2:20-CV-00814-JNP, 2026 WL 811540 (D. Utah Mar. 24, 2026) (Judge Jill N. Parrish). The plaintiffs in this case, Anne A. and her daughter Kate A., brought this action seeking recovery of benefits under the Apple, Inc. Health and Welfare Benefit Plan, an ERISA-governed employee group health benefit plan administered by United Healthcare Insurance Company. Mental health benefits were administered by United Behavioral Health. In 2016 and 2017 Kate received mental health treatment at Chrysalis, a residential treatment center, but defendants denied benefits for this treatment, resulting in a $250,000 bill. Plaintiffs filed this action in 2020, seeking benefits under 29 U.S.C. § 1132(a)(1)(B). In March of 2024, the court ruled that “Defendants arbitrarily and capriciously denied plan benefits for Kate’s treatment at Chrysalis” by not engaging with plaintiffs’ arguments, providing only vague and conclusory explanations, and failing to refer to the medical records. The court thus remanded for further review. Your ERISA Watch covered this ruling in our April 3, 2024 edition, noting that the court’s order was strongly worded and placed limitations on what evidence and rationales defendants could use on remand: “Given these restrictions, it’s unclear how any denial on remand could be anything but another abuse of discretion.” Defendants apparently did not get the same message because on remand they upheld their denial of plaintiffs’ claim. As a result, plaintiffs filed a motion to re-open the case and the parties once again filed cross-motions for summary judgment; plaintiffs also filed a motion for attorney’s fees. Plaintiffs argued that defendants “ignored the court’s remand instructions,” to which defendants shrugged: “Defendants, for their part, do not contest that their post-remand denials blatantly ignored the guardrail instructions the court set.” The court was not happy: “The court is hard pressed to understand Defendants’ actions up to this point[.]” However, defendants got away with it because the court concluded that “its initial remand instructions were too restrictive.” The court decided not to enforce its previous limit on citations to the record, although it “continues to adhere to the limit on new rationales, which the Tenth Circuit has endorsed.” Under this more lenient approach, buttressed by the arbitrary and capricious standard of review, the court found that defendants’ post-remand denials were reasonable and supported by substantial evidence because Kate’s treatment at Chrysalis was not medically necessary. The court agreed with defendants that her condition could have been managed at a lower level of care. The court further found that defendants’ letters “clearly articulated” their conclusions, cited appropriately to Kate’s medical records, and addressed plaintiffs’ arguments and evidence. As a result, defendants’ persistence paid off as the court granted their summary judgment motion and mostly denied plaintiffs’. The only bright spot for plaintiffs was the court’s decision to award them attorney’s fees. The court recognized that plaintiffs initially prevailed in obtaining a remand, and stated that “an award of attorney’s fees would serve an important deterrence function” and “will incentivize plan administrators to engage in a full and fair review in the first instance.” The court ordered plaintiffs to file a separate motion for fees which will be decided at a later date.

D.B. v. United Healthcare Ins. Co., No. 1:21-CV-00098-JNP-CMR, 2026 WL 851250 (D. Utah Mar. 27, 2026) (Judge Jill N. Parrish). Plaintiff D.B. is a participant in an ERISA-governed health benefit plan; A.B. is D.B.’s son and a plan beneficiary. A.B. received treatment at Triumph Youth Services, a residential treatment center, from 2018 to 2020 due to depression, anxiety, and suicidal ideation. However, United Behavioral Health, the plan’s mental health benefit administrator, denied benefits for the treatment, contending that it was not medically necessary, and that he could have been treated in a less intensive setting. D.B. unsuccessfully appealed and then brought this action under ERISA, seeking recovery of benefits and asserting violations of federal mental health parity laws. On June 1, 2023, the judge previously assigned to this case (J. Bruce S. Jenkins) found that UBH’s denial was arbitrary and capricious and remanded the case to UBH for further review. (Your ERISA Watch covered this ruling in our June 7, 2023 edition.) On remand UBH stuck to its guns and upheld its denial. D.B. thus moved to re-open the case in 2024. The court granted the motion, and in 2025 the parties filed cross-motions for summary judgment which were decided in this order. The court applied a deferential standard of review, focusing on whether the denial of benefits was arbitrary and capricious. The court noted that “Judge Jenkins provided Defendants a second chance at engaging in a full and fair review of the claim, in addition to clear remand instructions on how to cure prior deficiencies… Despite this renewed opportunity, Defendants’ post-remand denials, while more detailed than the pre-remand denials, are rife with issues such that the court again finds them to be arbitrary and capricious.” The court found, among other things, that (1) UBH’s denial letters contained conclusory statements without reasoning or citations to the medical record, preventing a full and fair review, (2) UBH did not meaningfully engage with a detailed psychiatric evaluation, providing only a perfunctory two-sentence response to the 47-page report, (3) UBH failed to follow Judge Jenkins’ remand instructions to address specific arguments and evidence presented by D.B., and (4) UBH relied on new guidelines (CALOCUS-CASII) not previously used, which constituted an improper post hoc rationale for denial. The court stated that because of UBH’s failures, “the court is unable to definitively find that A.B.’s treatment was medically necessary,” which “would normally suggest that remand is appropriate.” However, “this case diverges from the norm.” The court found that because of UBH’s “clear and repeated procedural errors… it would be contrary to ERISA fiduciary principles to mandate a remand and provide an additional ‘bite at the apple.’” The court stated that “the specter of continued remand opportunities would simply provide Defendants with, in essence, a way to hack the ERISA process. The court accordingly awards benefits to Plaintiffs, finding remand inappropriate.” The court also determined that attorney’s fees and prejudgment interest were appropriate. Finally, the court declined to rule on D.B.’s Parity Act claim because it was not renewed post-remand, and in any event the court had already awarded plan benefits.

Amy G. v. United Healthcare, No. 2:17-CV-00413-DN, 2026 WL 836549 (D. Utah Mar. 26, 2026) (Judge David Nuffer). This is an action for benefits under an ERISA-governed health care plan. On September 12, 2024, the court concluded that the decision of defendants United Healthcare and United Behavioral Health to deny benefits was arbitrary and capricious, and thus the court entered judgment in plaintiffs’ favor. However, the court did not award benefits and instead remanded the case to defendants for reconsideration. (Your ERISA Watch covered this ruling in our September 18, 2024 edition.) In October of 2024, defendants issued a decision on remand, denying plaintiffs’ claim once again and advising that plaintiffs could appeal. Plaintiffs were unhappy with this decision and filed a motion to reopen the case in December of 2024, seeking to file a motion for summary judgment. Plaintiffs contended that defendants failed to comply with the remand order by considering evidence not part of the administrative record. In the alternative, plaintiffs requested that they be allowed to appeal the redetermination. Defendants opposed this motion, arguing that their reevaluation complied with the remand order and that plaintiffs should have pursued an administrative appeal. Defendants further suggested that any challenge to their redetermination should be made in a new lawsuit. The court was slightly annoyed that “[b]oth parties’ briefing on Plaintiff’s Motion attempt to use the Remand Order as both shield and sword to justify their actions or inaction following the remand of Plaintiffs’ claim for benefits, as well as for reopening the case.” The court noted that “neither party sought clarification of the Remand Order” on the disputed issues, and “[s]uch clarification might have rendered Plaintiff’s Motion unnecessary.” The court further stated that plaintiffs’ motion “is not the appropriate procedural vehicle to make findings of fact and conclusions of law regarding the merits of Plaintiffs’ challenge to the propriety of Defendants’ redetermination denying benefits. It is also not the appropriate procedural vehicle to make findings of fact and conclusions of law on Defendants’ argument regarding a failure to exhaust the Plan’s administrative appeals process.” The court thus limited its inquiry only into whether the case should be reopened, and on this basis it granted plaintiffs’ motion. The court found that plaintiffs’ motion complied with the remand order’s directive by “‘identif[ying] the legal basis on which the case may be reopened and the specific issue or issues for which determination is sought.’ Requiring Plaintiffs to file a new lawsuit to obtain the determinations they seek is contrary to the language and intent of the Remand Order, as well as the purpose of ERISA to promote the ‘efficient resolution of benefits claims.’” The court thus reopened the case and ordered the parties to meet and confer regarding setting a briefing schedule for dispositive motions.

Pension Benefit Claims

Eighth Circuit

Bennett v. Ecolab, Inc., No. 24-CV-0546 (JMB/SGE), 2026 WL 810758 (D. Minn. Mar. 24, 2026) (Judge Jeffrey M. Bryan). Plaintiffs Scott Bennett, Brad Wilde, and David Statton are retired former employees of Ecolab, Inc. and participants in the Ecolab Pension Plan, an ERISA-governed defined benefit plan. The plan offers several optional forms of benefits, including a single life annuity (SLA) for unmarried participants, a joint and survivor annuity (JSA) for married participants, and an early retirement benefit. Plaintiffs, who were all married and elected JSAs, allege that Ecolab used outdated life expectancy rates from a 1971 Group Annuity Table to calculate JSAs, which they claim violates ERISA’s requirement that JSAs be “actuarially equivalent” to SLAs. Plaintiffs contended that life expectancy has “grown steadily since 1971,” and thus the Plan’s reliance on the 1971 Table “has caused proposed class members to lose ‘millions of dollars in benefits’ in the aggregate, effectively ‘penaliz[ing] participants for being married.’” Plaintiffs brought four claims against Ecolab: (1) violation of the joint and survivor annuity requirement under 29 U.S.C. § 1055; (2) violation of the actuarial equivalence requirements under 29 U.S.C. § 1054; (3) violation of ERISA’s anti-forfeiture provisions under 29 U.S.C. § 1053; and (4) breaches of fiduciary duty. Ecolab filed a motion to dismiss under Rule 12(b)(1) for lack of subject matter jurisdiction and Rule 12(b)(6) for failure to state a claim. On count 1, the court granted Ecolab’s motion as to plaintiffs Bennett and Wilde because they did not suffer an injury in fact. The court noted that they opted for early retirement, and under the plan’s early retirement calculations, their actual benefits exceeded what they would have received under Internal Revenue Code Section 417(e), which sets minimum present value requirements for pension plans, and thus they did not suffer a concrete injury. As for count 2, plaintiffs conceded that it should be dismissed because Section 1054 was inapplicable to their claims. On count 3, the court dismissed once again as to plaintiffs Bennett and Wilde due to lack of standing, as they received more than the actuarial equivalent of their normal retirement benefit. However, the court denied the motion to dismiss as to plaintiff Statton, who did not retire early and thus was not subject to the early retirement factor that offset the outdated SLA-to-JSA conversion factor. On count four, the court dismissed as to all plaintiffs because their claim was time-barred under ERISA’s six-year statute of repose. The court rejected plaintiffs’ argument that the breach recurred with each plan update, which would “render virtually meaningless the six-year statute of repose and conflicts with well-settled law.” These decisions left only counts 1 and 3 for plaintiff Statton. The court found that these counts were plausibly pled. Ecolab complained that these claims did not allege “the amount of Statton’s accrued benefit, the specific monthly amount that Statton currently receives under the Plan, nor the amount he would receive by applying section 417(e) actuarial assumptions.” However, the court considered Statton’s benefit calculation form, which was submitted to the court by Ecolab during briefing, and determined that it provided sufficient information for Statton’s claims to proceed. As a result, while Ecolab’s motion was granted in part, the case will continue.

Pleading Issues & Procedure

Sixth Circuit

Gray v. DTE Energy Co. Retirement Plan, No. 2:24-CV-11416-TGB-EAS, 2026 WL 800186 (E.D. Mich. Mar. 23, 2026) (Judge Terrence G. Berg). Vickie Gray was married to Randy Gray for over 25 years until they divorced in 2006. As part of the divorce judgment, Vickie was granted pension benefits and surviving spouse benefits pursuant to Randy’s participation in the DTE Energy Company Retirement Plan. Randy remarried to Joy Gray and retired in 2011. Vickie began receiving pension benefits in 2015, which ceased after Randy’s death in 2018. Vickie later discovered that Randy’s retirement application, signed by Joy, elected survivor benefits for Joy instead of Vickie. Specifically, Vickie alleges that in 2011 Randy and Joy submitted a new election of benefits, assigning the surviving spouse benefits to Joy and falsely certifying that “I am not currently and have never been involved in a Divorce that impacted my pension benefits.” Vickie thus filed this action against the Plan, Joy, and Randy’s estate. She contends that the Plan wrongfully denied her surviving spouse benefits in violation of ERISA, and alleged claims for fraud and misrepresentation against Joy and Randy’s estate. Vickie also sought a declaratory judgment declaring her entitlement to all rights and full surviving spouse benefits of Randy. The Plan filed an answer to Vickie’s complaint, but Joy and the estate “have failed to answer or otherwise respond to this action despite multiple attempts at personal service and alternate service as ordered by the Court[.]” Vickie thus filed a motion for default judgment against Joy and the estate. Meanwhile, Vickie and the plan filed cross-motions for judgment on the administrative record. In this order, the court denied Vickie’s motion for default judgment without prejudice. The court reasoned that in multi-defendant cases, it is the “preferred practice…to delay granting the default judgment motion against only one or some of the defendants until the court reaches a decision on the merits against all.” The court noted that granting default judgment against Joy and the estate could result in a finding that Vickie was entitled to surviving spouse benefits, which would be inconsistent with a subsequent ruling in favor of the Plan on its motion, which would necessitate finding that Vickie was not entitled to those same benefits. Therefore, the court decided to delay the entry of default judgment until Vickie’s claim against the Plan is resolved. The court emphasized that its decision was made only to prevent the possibility of inconsistent verdicts; it “expresses no opinion whatsoever as to the merits of the cross-motions for judgment on the administrative record.”

Provider Claims

Second Circuit

AA Medical, P.C., v. Iron Workers Local 40, 361 & 471 Health Fund, No. 22-CV-1249-SJB-LGD, 2026 WL 836429 (E.D.N.Y. Mar. 26, 2026) (Judge Sanket J. Bulsara). AA Medical, P.C., a surgical practice group, filed this action against the Iron Workers Local 40, 361, and 471 Health Fund challenging the Fund’s decision to deny and limit reimbursement for an arthroscopic knee surgery AA Medical performed on a Fund participant. The surgery in question was performed in 2021 and involved two procedures: (1) an arthroscopy and repair of both menisci (procedure 29883), and (2) a left knee microfracture chondroplasty (procedure 29879). AA Medical submitted an invoice for $158,438.64, but the Fund paid only $3,473.22 for the first procedure, and nothing for the second procedure, contending that it was not medically necessary. AA Medical asserted a single claim under ERISA § 502(a)(1)(B), seeking to enforce its right to benefits under the plan. AA Medical alleged that the Fund unlawfully underpaid for procedure 29883 and denied recovery for procedure 29879. The Fund moved for summary judgment. The court reviewed the Fund’s decisions under the arbitrary and capricious standard of review because the Plan vested it with discretionary authority to determine benefit eligibility. Under this deferential standard, the court found that the Fund’s decision to pay $3,473.22 for the pre-approved procedure was neither arbitrary nor capricious. The Fund relied on the FAIR Health schedule of allowances to determine the allowed amount for procedure 29883 and paid 60% of that allowance, as specified under the Plan’s terms. The court deemed AA Medical’s counter-argument as offering “no more than conclusory assertions with no citation to authority. It argues that the determination was unreasonable because the amount paid was just 2% of the total amount billed… But just because AA Medical was paid less than what it expected or charged, does not render the decision arbitrary or capricious.” In fact, the Plan “makes clear” that it does not always pay benefits equal to or based on the provider’s actual charge, and only covers the “Allowed Charge” amount, which permitted the Fund to consult the Fair Health schedule. As for the denied procedure (29879), the court upheld the Fund’s determination that the microfracture chondroplasty was not medically necessary. The Fund’s consultant reviewed the relevant medical records and concluded that the procedure was not supported by the supplied records. AA Medical argued that there was an issue of fact as to the necessity of the procedure, but the court emphasized that the issue was whether the Fund had a reasonable basis for its decision, not whether the decision was correct. The court also discounted a declaration from the surgeon, finding that it was outside the reviewable record. As a result, the court ruled that the Fund’s determinations were supported by substantial evidence and were not arbitrary or capricious, and granted its motion for summary judgment.

Third Circuit

The Plastic Surgery Center, P.A. v. Aetna Life Ins. Co., No. 23-CV-21439-ESK-AMD, 2026 WL 821139 (D.N.J. Mar. 25, 2026) (Judge Edward S. Kiel). The Plastic Surgery Center has filed 47 related cases in which it seeks reimbursement from Aetna Life Insurance Company for surgical procedures it performed on patients insured by Aetna. The Center, an out-of-network provider, alleges that it entered into agreements with Aetna to perform surgical procedures on the patients in exchange for payment at an in-network rate. However, Aetna reimbursed the Center at significantly lower rates. The Center has asserted three state law claims against Aetna: (1) breach of contract, (2) promissory estoppel, and (3) negligent misrepresentation. To simplify the issues, the parties agreed to present four representative cases to the court at the motion to dismiss stage; the patients involved were K.R., C.S., M.T., and N.D. Aetna contended that K.R. and M.T.’s plans were governed by ERISA, and the court agreed. The court noted that the Center’s claims were based on telephone calls and authorization letters, and that the representations made in these communications “demonstrate that the plan was central to the letter and phone conversations, rather than independent or separate” from the plans. The court found the decision in Princeton Neurological Surgery v. Aetna persuasive (as discussed in our March 8, 2023 edition), where similar claims were preempted because they were based on plan terms rather than independent agreements. As a result, the court dismissed the cases involving K.R. and M.T. As for the other two representative cases, in the C.S. case, the court dismissed the breach of contract, promissory estoppel, and negligent misrepresentation claims for failure to state a claim. The court found that the call transcripts did not demonstrate a meeting of the minds or a clear and definite promise necessary to support these claims. In the N.D. case, the court allowed the breach of contract and promissory estoppel claims to proceed, finding that the call transcripts supported the existence of an agreement to pay at an in-network rate. However, the negligent misrepresentation claim was dismissed due to the economic loss doctrine, which precludes tort claims based on breaches of contractual promises.

Fifth Circuit

South Austin Emergency Ctr. v. Blue Cross Blue Shield of Tex., No. 1:23-CV-1488-RP, 2026 WL 838337 (W.D. Tex. Mar. 24, 2026) (Judge Robert Pitman). The plaintiffs in this mammoth medical benefit case consist of five Texas emergency centers and thousands of patients who were insured by defendants and treated by the centers at their facilities. The defendants are 42 regional entities, or “home plans,” operating under the umbrella of Blue Cross Blue Shield. These defendants participate in the “BlueCard Program,” which allows insured individuals to receive healthcare services outside their plan’s regional service area. The emergency centers are out-of-network providers who allege that defendants have routinely underpaid them for medical services rendered to the patient plaintiffs under claims funneled through Blue Cross Blue Shield of Texas pursuant to the Blue Card Program. The case involves “approximately 63,390 claims for emergency medical care the SCEC Plaintiffs provided to the Patient Plaintiffs, for which the SCEC Plaintiffs billed $272,913,789.00 but only received $40,806,773.20 in reimbursement.” Plaintiffs have asserted two claims for relief: (1) violation of ERISA for claims from insurance plans governed by ERISA; and (2) breach of contract for claims from insurance plans not subject to ERISA. Defendants filed nine motions in total to dismiss the case, which were all referred to an unlucky magistrate judge. The omnibus defendants sought to dismiss the patient plaintiffs for lack of subject matter jurisdiction and to dismiss claims for declaratory judgment and implied contract for failure to state a claim. Other motions to dismiss were filed by various defendants challenging personal jurisdiction and the validity of certain claims. The magistrate judge made numerous rulings, some of which defendants objected to; the court resolved those objections in this order. First, the court addressed the personal jurisdiction arguments made by many of the home plans regarding the breach of contract claim. (The home plans acknowledged that the court had jurisdiction over the ERISA claim.) The court agreed with defendants and ruled that no agency relationship existed between BCBS Texas and the home plan defendants. The court found that BCBS Texas “forwards the claim of an insured individual who received care out of state to that individual’s Home Plan, who then makes the coverage determination and reimburses BCBS Texas for any payment it then makes on behalf of the Home Plan entity[.]” As a result, BCBS Texas did not act as the home plans’ agent and thus the court lacked personal jurisdiction over them. For the same reason, the court disagreed with the magistrate judge’s finding of a common nucleus of operative facts for pendent personal jurisdiction. The court then turned to the omnibus motion, which sought to dismiss the patient plaintiffs for lack of standing. The court noted that “there is no question whether the assignments here were valid – Plaintiffs have alleged that they exist and do not dispute their validity, and Defendants do not dispute their existence or validity either nor raise the existence of any anti-assignment claims.” As a result, because the patients had assigned their claims, they no longer had standing; only the emergency centers did. As for the rest of the magistrate judge’s rulings, they were unchallenged and upheld, and thus the case will continue.

Ninth Circuit

Valley Children’s Hosp. v. Grimmway Enterprises, Inc., No. 1:24-CV-00643 JLT CDB, 2026 WL 832895 (E.D. Cal. Mar. 26, 2026) (Judge Jennifer L. Thurston). Valley Children’s Hospital filed this action against Grimmway Enterprises, Inc. and Grimmway’s ERISA-governed health benefit plan, claiming that they wrongfully denied and failed to pay benefits for the hospital’s treatment of “Patient O,” a minor child covered under the plan. Patient O was born with serious heart defects and received extensive treatment at the hospital, which billed Grimmway and the plan for $8,188,227.20. Of this, $4,843,851.72 was the contracted reimbursable amount, but Grimmway only reimbursed $3,046,084.21, leaving an outstanding balance of almost $1.8 million. The hospital asserted a claim under 29 U.S.C. § 1132(a)(1)(B), contending that it was a proper plaintiff pursuant to an assignment of rights from Patient O. Defendants moved to dismiss for failure to state a claim, contending that the hospital lacked standing to bring the claim because Patient O’s assignment of benefits was barred by an anti-assignment provision in the plan. The hospital opposed the motion, arguing that it sought to enforce rights rather than recover benefits, which should not be precluded by the anti-assignment provision. The court agreed with defendants: “Plaintiff lacks statutory standing because, as currently pled, Patient O’s assignment was invalid.” The court ruled that the hospital’s claim to recover benefits fell within the scope of the anti-assignment provision, which was valid and enforceable under ERISA. “The anti-assignment provision clearly invalidates Patient O’s transfer of ‘benefits.’ If Plaintiff seeks to recover ‘benefits,’ it is therefore stripped of derivative standing under 29 U.S.C. § 1132(a)(1)(B).” The court disagreed with the hospital’s argument that it sought to “enforce rights” rather than “recover benefits,” concluding that “[b]ecause the Hospital sues exclusively for compensatory damages resulting from Grimmway’s alleged failure ‘to pay benefits as required by the Plan,’” its claim was one for benefits under ERISA and thus “must be dismissed for lack of standing under 29 U.S.C. § 1132(a)(1)(B).” The motion was not a total defeat for the hospital, however. The court gave the hospital an opportunity to amend its complaint to assert a procedural claim related to enforcing rights under the plan’s appeals process, “to the extent they can, consistent with Rule 11, articulate one that is not barred by the anti-assignment provision.”

Retaliation Claims

Seventh Circuit

Richards v. Centric Manufacturing Solutions, Inc., No. 25-C-1474, 2026 WL 851277 (E.D. Wis. Mar. 27, 2026) (Judge William C. Griesbach). Stephen Richards filed this action against his former employer, Centric Manufacturing Solutions, Inc., alleging that Centric terminated his employment due to the high cost of his medical treatment for cancer and the associated insurance costs in violation of ERISA. Centric asserted as an affirmative defense in its answer that Richards’ claims were barred by a release agreement he signed as part of a severance package. Centric also filed a counterclaim seeking a declaration that Richards’ ERISA claims were barred by the agreement, or, alternatively, for judgment for the amount paid to Richards under the agreement. Centric then filed a motion for judgment on the pleadings based on this defense. Richards opposed, contending that Centric breached the agreement by failing to pay the promised amounts in a timely manner, specifically the payment for unused paid time off, which he argued was a material breach allowing him to rescind the agreement. The parties agreed that Wisconsin law governed the interpretation of the agreement. The court stated that whether a breach is material is a question of fact, and that rescission is allowed “when a breach is so substantial as to destroy the essential object of a contract.” Centric contended that “Richards is not entitled to rescind the Agreement in this case because the breach he alleges can be fully redressed by an award of damages,” but the court found this argument “unpersuasive.” At this stage of the proceedings, it was not clear to the court whether Centric’s breach was “incidental and subordinate to the main purpose of the contract” or whether the remedy proposed by Centric would “provide ‘clear, adequate, and complete relief.’” Therefore, the court denied Centric’s motion and set the case for a scheduling conference.

Venue

Tenth Circuit

Mark S. v. Carelon Behavioral Health, No. 2:25-CV-00352 JNP, 2026 WL 824111 (D. Utah Mar. 24, 2026) (Judge Jill N. Parrish). Plaintiffs Mark S. and L.S. filed this action in the United States District Court for the District of Utah to recover benefits under 29 U.S.C. § 1132(a)(1)(B) against Carelon Behavioral Health, Chevron Corporation, and the Chevron Corporation Mental Health and Substance Use Disorder Plan after defendants failed to approve benefits for medical treatment received by L.S. Plaintiffs reside in Texas, and Chevron, the plan administrator, is (recently) headquartered in Texas. L.S. received treatment at The Menninger Clinic in Texas and at Solacium New Haven RTC in Utah. Before the court here was defendants’ motion to transfer venue from the District of Utah to the Southern District of Texas pursuant to 28 U.S.C. § 1404(a). The court noted that it had “broad discretion” to grant a change of venue and considered several factors, including the plaintiff’s choice of forum, accessibility of witnesses, cost of proof, enforceability of judgment, and other practical considerations. The court noted that the plaintiff’s choice of forum is given less deference when the plaintiff does not reside in the district and when the facts giving rise to the lawsuit have no significant connection to the chosen forum. Here, the only connection to Utah was L.S.’s treatment; none of the parties resided in Utah and the plan was not administered or breached there. The court found that the Southern District of Texas was a more appropriate forum because the relevant witnesses and documents were located in Texas, where the plan was administered and the breach occurred. Additionally, the court compared docket congestion and found that the Southern District of Texas had shorter times from filing to disposition and trial compared to the District of Utah, which favored transfer. The court thus concluded that practical considerations and the interests of justice supported transferring the case to the Southern District of Texas, and it granted defendants’ motion accordingly.

Reichert v. Kellogg Co., No. 24-1442, __ F.4th __, 2026 WL 734673 (6th Cir. Mar. 16, 2026) (Before Circuit Judges Stranch, Bush, and Nalbandian)

This week’s notable decision is a published opinion from the Sixth Circuit diving into the messy world of SLAs, JSAs, and QJSAs.

For those who don’t know what these terms mean (and have not fallen asleep yet), they refer to ways to calculate and pay benefits under ERISA-governed defined benefit plans, i.e., traditional pensions. ERISA requires plans to offer unmarried participants a single life annuity (SLA), which pays a defined benefit during their lifetimes. For married participants, plans must offer a joint and survivor annuity (JSA), which pays out over the joint lives of the participant and his or her spouse.

The focus of our attention this week is on qualified joint and survivor annuities (QJSAs), which are JSAs that meet ERISA’s statutory requirements and are the default benefit option for a married plan participant. A QJSA allows plans to pay one benefit starting at retirement, through the death of the participant, which is then followed by another benefit to the spouse, which must be at least 50% of the initial benefit. ERISA Section 1055(d) requires that a QJSA be the “actuarial equivalent of a [SLA] for the life of the participant.”

Crucially, ERISA does not define the term “actuarial equivalent,” and this litigation was a battle over how to interpret it. The case is actually two cases in one; the Sixth Circuit consolidated appeals involving the pension plans of two companies: the Kellogg Company and FedEx Corporation. Both companies maintain ERISA-governed employee pension plans that offer married participants JSAs that they contend meet the criteria for QJSAs.

In calculating their JSAs, both companies used an interest rate and a mortality table in order to convert SLAs to a QJSA equivalent. The interest rates represented the time value of money, while the mortality tables estimated the expected longevity of plan participants. These two numbers were combined to create a “conversion factor,” which was used to translate SLA values into appropriate QJSA values. In performing these calculations, the Kellogg plan used the “Uninsured Pensioners (UP) 1984 Mortality Table,” while the FedEx plan used the UP 1984 table as well as “the 1971 GAM Mortality Table.”

The plaintiffs in both cases argued that because mortality rates have greatly improved over the last several decades, these tables were out of date. The tables generated higher mortality rates, which meant fewer total payments for the SLA comparator, resulting in a lower conversion factor for the JSAs. Because the conversion factor was lower, the monthly payments under the pension plans were also lower.

The plaintiffs filed class actions, alleging that this practice violated the actuarial equivalence requirement of Section 1055(d) and constituted a breach of fiduciary duty under 29 U.S.C. § 1104. Both lawsuits were initially unsuccessful. In both cases the district court granted motions to dismiss, ruling that Section 1055 does not require the use of particular mortality tables or actuarial assumptions. The plaintiffs appealed, and the Sixth Circuit addressed this “matter of first impression.”

The appellate court began with the statutory text, identifying the “critical interpretive issue” as “the meaning of the term ‘actuarial equivalent’ at the time of ERISA’s enactment in 1974.” The court noted that the term has been understood in actuarial practice to mean that “one benefit has an equal present value to another benefit after accounting for certain actuarial assumptions, such as mortality rates.” This “‘established meaning’ persists in the modern era.”

As a result, “actuarial scientists recognized that ensuring equal present value between or among benefits requires mortality data that appropriately reflects the expected lives of the recipients of the benefits.” Thus, when calculating pension benefits, “a mortality table was understood to be ‘appropriate’ or ‘suitable’ when it aligned with the life expectancy of the relevant participant population.”

The court further examined historical case law, and determined that it “point[ed] in the same direction – actuarial equivalence requires mortality assumptions that reasonably reflect the lives of the applicable benefit recipients. That means using up-to-date mortality data, not data from half a century ago.” The court explained that “[t]his makes good sense,” because actuarial calculations are supposed to be “based on real-world conditions.”

The court also found that this interpretation was supported by Section 1055, which refers to “the life of the participant.” This reference to a concrete individual person “necessarily requires the use of mortality data reasonably reflecting the life expectancy of a retiree living in the present day.” Treasury Department regulations also aligned with this interpretation, because they provided that “actuarial equivalence ‘may be determined, on the basis of consistently applied reasonable actuarial factors, for each participant or for all participants or reasonable groupings of participants[.]’”

Thus, the court concluded that plan administrators could not use “whatever assumptions they wish”; they were constrained by reasonableness. Of course, “reasonableness is a range, not a precise prescription…Actuarial science requires reasonable estimates, and different actuaries can come to different conclusions on what the exact best estimates are in each situation.” Under ERISA, those conclusions are entitled to deference “if they are ‘within the scope of professional acceptability.’” However, those assumptions must “reasonably reflect the life expectancy of its plan participants[.]” If they do not, “that employer has exceeded the scope of actuarial acceptability and failed to adhere to § 1055(d)’s actuarial equivalence requirement.”

With this understanding, the Sixth Circuit turned to plaintiffs’ specific allegations and had no trouble concluding that they had alleged plausible claims. Plaintiffs had alleged that defendants used outdated and unreasonable mortality data which did not satisfy Section 1055’s actuarial equivalence requirement and resulted in lower benefit payments. “Plaintiffs have thus stated plausible claims for violation of § 1055 and breach of fiduciary duty under ERISA.”

The court then turned to defendants’ arguments and found them unavailing. Defendants contended that “§ 1055(d) does not expressly mandate that plans use ‘reasonable’ actuarial assumptions or delineate particular actuarial factors that plans must follow,” noting that other sections of ERISA explicitly used the word “reasonable” or “identif[ied] particular actuarial factors that plans should use[.]”

However, the court stated flatly that “[a]dopting this view of the statute would render the text of § 1055(d)(1)(B) meaningless.” This argument would “authorize employers to select data that allows the conversion between an SLA and a QJSA to work any way the employer wants, without regard to whether the two forms of benefits have a present value that is in fact equivalent,” thus rendering the “actuarial equivalence” requirement irrelevant.

Defendants attempted to assure the court that “they do not currently use…outlandish and outdated data,” but this “does not address the core interpretive problem, which is that their construction would allow an employer to use mortality rates that are completely out of step with the mortality rate of modern-day plan participants…Generally, courts should avoid interpreting statutes in a manner that could result in ‘absurd’ outcomes.”

The court also addressed defendants’ argument that Section 1055(d) “effectively acts as a disclosure mandate, requiring employers to disclose their actuarial assumptions in their plan documents and adhere to [them].” The court found that this argument “makes little sense.” ERISA already requires administrators to disclose plan terms, and thus defendants’ interpretation “would impermissibly render the provision entirely superfluous.” Furthermore, defendants’ interpretation “imposes no substantive limitations on the nature of the benefit itself” and thus “fails to add any ‘mean[ing]’ to the term QJSA in § 1055(d)(1).”

The court acknowledged that other sections of ERISA expressly impose a reasonableness requirement, but did not conclude that this meant Section 1055 lacked one. The court examined the other sections cited by defendants, but explained that they were “dissimilar, with different language and different formulations addressing different circumstances.” Furthermore, “none of these five sections…contain the term ‘actuarial equivalent’ or the clause ‘for the life of the participant,’” and thus they were unhelpful.

Finally, the court addressed defendants’ policy concerns, which included the difficulty of judicially determining what makes a set of actuarial assumptions “reasonable,” and the prospect of increased litigation challenging and interfering with plan administration. The court noted that “[p]ure policy considerations, of course, do not constitute a proper method of statutory interpretation,” and stated that courts were well equipped to evaluate reasonableness, especially in the ERISA context: “[t]his type of litigation is well within the wheelhouse of ERISA.” Furthermore, plans were still entitled to deference in their choice of reasonable assumptions.

As a result, the Sixth Circuit reversed and remanded. The decision was not unanimous, however. Judge John B. Nalbandian dissented, contending that Section 1055 does not require the use of “reasonable” actuarial assumptions. He stated that the term “reasonable” is absent from the statutory text and that the ordinary meaning of “actuarial equivalent,” as well as the “downstream” terms such as SLA and QJSA, do not impute a reasonableness requirement.

Judge Nalbandian also contended that the majority improperly relied on non-binding sources and “overemphasize[d] marginal sources,” such as academic literature and inapposite state court decisions, to read a reasonableness requirement into the statute. 

Furthermore, Judge Nalbandian minimized the majority’s concern that plans could use wildly outdated mortality assumptions by noting that the Internal Revenue Code and its regulations already impose a reasonableness requirement on actuarial assumptions for pension plans. Violating these rules would lead to harsh consequences for plans, and thus “the value of those tax exemptions and deductions likely dwarf any plausible liability under ERISA.”

Finally, Judge Nalbandian raised the specter of “even more litigation and higher administrative costs,” which will be “passed on and will ultimately injure the continued viability of the plans. So it’s hard to see how this standard will benefit anyone besides the attorneys who litigate these cases.”

These arguments obviously did not carry the day, however, so in the Sixth Circuit at least the rule going forward is that Section 1055(d) prohibits employers from using unreasonable actuarial assumptions when calculating QJSAs.

Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Arbitration

Second Circuit

Trustees of Int’l Union of Bricklayers & Allied Craftworkers Local 1 Connecticut Health Fund v. Elevance, Inc. f/k/a Anthem, Inc., No. 3:22-CV-1541 (SFR), 2026 WL 788179 (D. Conn. Mar. 20, 2026) (Judge Sarah F. Russell). The plaintiffs in this case, the Local 1 Fund and the Local 40 Fund, are two multi-employer, self-funded health benefit plans that provide medical benefits to union members, retirees, and their dependents. They entered into administrative service agreements (ASAs) with Elevance, Inc., formerly known as Anthem, Inc., in 2007 (Local 1) and 2020 (Local 40) to perform services for the plans. In 2022, however, the trustees of the plans requested claims data from Anthem and Anthem pushed back. As a result, plaintiffs obtained claims data from a third-party vendor, Zenith, which “revealed numerous irregularities.” The trustees of the funds thus filed this putative class action against Anthem and its affiliates alleging violations of ERISA. Defendants moved to compel arbitration of Local 1’s claims pursuant to the 2007 ASA, and argued that Local 40’s claims should be stayed pending that arbitration. Plaintiffs opposed, arguing that defendants waived their right to arbitrate through their conduct in the litigation. The court agreed with the funds. The court found that a valid arbitration agreement existed between Anthem and the Local 1 Fund because the 2007 ASA included a dispute resolution clause that allowed for arbitration. However, the court concluded that defendants waived their right to arbitrate by acting inconsistently with that right. The court explained that defendants had engaged in substantial litigation conduct, including filing a motion to dismiss, engaging in discovery, and participating in mediation, before they filed their motion to compel. The court emphasized that “[a]rbitration is not a fallback position,” and that seeking “full and final resolution of claims against them in federal court” is “not consistent with the right to compel arbitration.” The court rejected defendants’ claim of lack of knowledge about the arbitration provision because they knew or should have known about the dispute resolution process outlined in the ASA before the litigation commenced. Defendants’ motion to compel arbitration was thus denied.

Attorneys’ Fees

Tenth Circuit

K.S. v. Cigna Health & Life Ins. Co., No. 1:22-CV-00004, 2026 WL 752700 (D. Utah Mar. 17, 2026) (Magistrate Judge Dustin B. Pead). The plaintiffs in this case, mother and son K.S. and Z.S., brought this action challenging Cigna Health and Life Insurance Company’s denial of their claim for benefits under the Accenture LLP Benefit Plan for mental health treatment Z.S. received in 2019 and 2020. Plaintiffs alleged two claims in their complaint against Cigna and the Accenture plan: one for recovery of benefits under 29 U.S.C § 1132(a)(1)(B), and one for violation of the Mental Health Parity and Addiction Equity Act (MHPAEA), under 29 U.S.C. § 1132(a)(3). The parties cross-moved for summary judgment, and in 2024 the court granted plaintiffs’ motion in part while denying defendants’ motion entirely. (Your ERISA Watch reported on this decision in our July 17, 2024 edition.) The court ruled that Cigna’s denial was arbitrary and capricious because it failed to adequately explain its reasoning, did not engage with the opinions of Z.S.’s treating physicians, and did not address plaintiffs’ coverage arguments. The court remanded to Cigna for further consideration, after which Cigna reversed its denial for treatment Z.S. received from February 5, 2019 through October 15, 2019, but upheld its denial for treatment from October 16, 2019 through March 9, 2020. Plaintiffs then filed a “motion for a determination of benefits and an award of attorneys fees, prejudgment interest, and costs.” The parties agreed that the amount of benefits owed was $124,146, and thus the court awarded this amount. As for attorney’s fees, the court agreed that plaintiffs had achieved “some degree of success on the merits.” The court then applied the Tenth Circuit’s five-factor test and concluded that four of them weighed in favor of an award, and thus a fee award was appropriate. Turning to the calculation of fees, plaintiffs’ counsel Brian S. King requested an award using an hourly rate of $650, but the court found this “somewhat high. No court in this district has found $650 to be a reasonable rate for Mr. King.” (This is not exactly accurate; another court in Utah just ruled that $650 per hour was appropriate for Mr. King.) As a result, the court “finds it appropriate to award a rate of $600 per hour.” As for the time spent on the case, Mr. King attested he spent 68 hours, but the court reduced this amount by 2.1 hours for non-compensable pre-litigation work. Defendants further argued that plaintiffs’ fee award should be reduced because they abandoned their Parity Act claim, but “the court finds that the Plaintiffs’ MHPAEA claim and ERISA claim ‘involve a common core of facts’ and are ‘based on related legal theories’ and declines to reduce the billed hours amount.” The court also rejected defendants’ argument that the fee should be reduced because plaintiffs did not receive all the benefits they sought. Finally, the court approved plaintiffs’ request for $400 in costs and a prejudgment interest rate of ten percent, a rate “courts in this district have commonly applied.” As a result, the court ordered defendants to pay plaintiffs $124,146 in benefits, $88,296.72 in prejudgment interest, $73,822.50 in attorneys’ fees, and $400 in costs.

Breach of Fiduciary Duty

Fourth Circuit

Beroset v. Duke Univ., No. 1:25-CV-919, 2026 WL 765518 (M.D.N.C. Mar. 16, 2026) (Judge Catherine C. Eagles). This is yet another in a long line of cases alleging that a benefit plan administrator breached its fiduciary duties by misallocating forfeited employer contributions in an ERISA-governed defined contribution retirement plan. The plan in this case was sponsored by Duke University. Employees can make voluntary contributions to Duke’s plan, which immediately vest, while Duke also makes certain contributions for eligible employees, which are subject to a three-year vesting period. If employees leave before vesting, they forfeit Duke’s contributions. The question, as always, is what should be done with these forfeited contributions. The plan allowed Duke to use them to fund employer contributions for returning employees, pay plan expenses, or reduce future employer contributions. Plaintiff Frances Beroset alleges that Duke never used the forfeited contributions to pay plan expenses, which constituted a breach of fiduciary duty to plan participants. Beroset argued that “it is always in the best interests of plan participants when their plan expenses are defrayed.” Duke filed a motion to dismiss, which the court granted in this brief order. Duke argued that the plan explicitly granted it discretion to choose how to use the forfeited contributions, and that Beroset did not allege that she or any other participants did not receive the full benefits the plan promised. The court noted that “[m]ost courts have rejected ERISA claims concerning forfeited employer contributions, reasoning that ‘when (1) a plan document gives a plan fiduciary discretion in how to use forfeitures and (2) participants otherwise receive everything guaranteed by the plan’s terms, plan fiduciaries do not violate their duty of loyalty merely by declining to use forfeitures to cover administrative expenses.’” The court “agree[d] with the weight of authority and finds the reasoning in those cases to be persuasive.” Beroset argued that she “does not allege or argue that allocating forfeitures to offset employer contributions is a per se breach of fiduciary duty,” but the court was unconvinced: “when one reads her complaint and her brief, it is hard to see that.” The court thus considered Beroset’s claims to be per se claims that were untenable for the reasons just discussed. The court further ruled that even if Beroset was not bringing a per se claim, her complaint failed to satisfactorily allege “fact-specific fiduciary misconduct” because even though “the operative complaint is very long and full of many details,” the specific allegations regarding Duke’s choices were “conclusory” and thus “insufficient to state a claim.” The court thus granted Duke’s motion to dismiss.

Sixth Circuit

Greene v. Progressive Corp., No. 1:24-CV-01890, 2026 WL 785004 (N.D. Ohio Mar. 20, 2026) (Judge David A. Ruiz). The plaintiffs in this case are current and former employees of Progressive Corporation who allege that the wellness program in Progressive’s employee health plan violates ERISA. The program offers lower health insurance premiums to participants who are tobacco-free or received the COVID-19 vaccine. Tobacco-free participants pay $15 less per pay period, and those vaccinated against COVID-19 paid $25 less. Plaintiffs characterized these as “surcharges” on tobacco users and those who opted against the vaccine, and alleged they were not compliant with federal law. They alleged five counts: (1) unlawful imposition of a discriminatory tobacco surcharge in violation of 29 U.S.C. § 1182; (2) unlawful imposition of a discriminatory vaccine surcharge in violation of 29 U.S.C. § 1182; (3) failure to notify of a reasonable alternative standard for avoiding the tobacco surcharge in violation of 29 U.S.C. § 1182 and 29 C.F.R. § 2590.702; (4) failure to notify of a reasonable alternative standard for avoiding the vaccine surcharge in violation of 29 U.S.C. § 1182 and 29 C.F.R. § 2590.702; and (5) breach of fiduciary duty in violation of ERISA, §§ 404 and 406. Progressive filed a motion to dismiss for failure to state a claim and for lack of subject-matter jurisdiction, contending that plaintiffs lacked standing. The court found that the wellness program provided adequate “notice of a reasonable alternative standard” because it “substantively matches the sample language – nearly verbatim – provided by the [Department of Labor].” The court rejected plaintiffs’ argument that the plan did not describe the program’s reasonable alternative standard; the plan was not required to do so under the regulations, which only required it to disclose that such a program was available. Next, plaintiffs argued that the wellness program did not provide retroactive reimbursement for surcharges, which they claimed violated ERISA’s requirement to “provide the ‘full reward’ to all similarly situated individuals.” The court disagreed, finding that retroactive reimbursements were not legally required: “[T]he statute does not say anything about a retroactive reward and there is no reason to imbue the statute with such a requirement.” The court admitted that other judges had ruled to the contrary, but found their interpretations “run[] contrary to the plain language of the statute… If Congress intended the statute to provide the reward retroactive for the entire plan year, then it could have easily stated as much.” Next, the court addressed plaintiffs’ breach of fiduciary duty claim, ruling that Progressive acted as a settlor, not a fiduciary, when designing the wellness programs, and thus the claim was unviable. For the same reason the court also found no prohibited transaction, as the collection of premiums and surcharges was a feature of the plan’s structure, implicating a settlor rather than a fiduciary function. Finally, the court declined to address the issue of standing and administrative exhaustion because it had already determined that plaintiffs failed to state a claim: “In the interests of judicial economy, the Court finds resolution of this issue to be unnecessary.” As a result, the court granted Progressive’s motion and dismissed plaintiffs’ complaint.

Ninth Circuit

Johnson v. Carpenters of W. Wash. Bd. of Trustees, No. 2:22-CV-01079-JHC, 2026 WL 799702 (W.D. Wash. Mar. 23, 2026) (Judge John H. Chun). The plaintiffs in this class action are union carpenters who were participants in two multi-employer pension plans, the “DC Plan” and the “Pension Plan.” The two plans were managed by the Carpenters of Western Washington Board of Trustees and Callan, LLC. Plaintiffs contend that defendants mismanaged the plan by inappropriately investing plan funds. Specifically, they allege that between 2014 and 2016, defendants “invested nearly a fifth of the Plans’ assets into two volatility hedge funds[.]” These investments “were wildly inappropriate in light of the Plans’ investment timeframe, plan structure, and risk tolerance.” Plaintiffs allege that by early 2020, “the Funds suffered, leaving the Plans with $250 million in losses and resulting in reduced payouts to participants.” Plaintiffs filed suit in 2022, alleging breach of fiduciary duty under ERISA. They also pled alternative claims under common law fiduciary and negligence theories. Defendants filed a motion to dismiss, which was granted without leave to amend. However, the Ninth Circuit rescued plaintiffs in 2024, ruling that they had standing, and that they sufficiently stated their claims of imprudence and failure to monitor under ERISA. (Your ERISA Watch covered this decision in our August 7, 2024 edition.) Now the case is on remand to the district court, and defendant Callan LLC has filed a motion for judgment on the pleadings, which was joined by the trustees. (Meanwhile, the court has already granted the parties’ stipulated motion certifying and defining the class.) Callan argued in its motion that the Ninth Circuit’s recent decision in Anderson v. Intel Corp. Inv. Pol’y Comm., 137 F.4th 1015 (9th Cir. 2025), constitutes an “intervening change in the law” by imposing a “meaningful benchmark” requirement, thus compelling the district court to revisit the Ninth Circuit’s earlier ruling in this case that “Plaintiffs have [] stated a claim under ERISA.” (Your ERISA Watch reported on the Anderson decision in our May 28, 2025 edition.) The district court disagreed, noting that Anderson itself found that “[c]omparison is not a pleading requirement for a breach of fiduciary claim.” In any event, “this is not an underperformance case” that might require pleading of meaningful benchmarks. The court explained that plaintiffs did not rely solely on circumstantial allegations and had directly alleged facts showing the imprudence of the investments. Furthermore, the court rejected defendants’ argument that plaintiffs’ claims constituted an impermissible “per se challenge” to volatility hedge funds because plaintiffs had pleaded facts showing the investments “‘were imprudent at the scale [Defendant] made them’ and alleged ‘that those investments were particularly risky.’” Furthermore, defendants plausibly violated ERISA’s “require[ment] that a fiduciary ‘diversify[ ] the investments of the plan so as to minimize the risk of large losses.’” Finally, regarding the common law claims against Callan, the court ruled that it “need not determine if the state-law claims relate to or connect with the ERISA plan because the Ninth Circuit has already determined Defendant Callan’s ERISA fiduciary status.” Furthermore, plaintiffs had conceded that if Callan acted as an ERISA fiduciary, their common law claims would be preempted. As a result, the court granted defendants’ motion as to plaintiffs’ common law claims, but denied it as to their claims under ERISA.

Disability Benefit Claims

Second Circuit

Alexander v. Unum Life Ins. Co. of Am., No. 25-974, __ F. App’x __, 2026 WL 742865 (2d Cir. Mar. 17, 2026) (Before Circuit Judges Sullivan, Lee, and Merriam). Katherine Alexander was a nurse practitioner who was covered by an ERISA-governed long-term disability (LTD) employee benefit plan insured by Unum Life Insurance Company of America. Alexander alleged that she contracted COVID-19 in 2020, which resulted in long COVID symptoms, including chronic fatigue and brain fog. In September 2021, she reported that she “had trouble standing, walking, and using a computer for more than short periods at a time, had reduced energy and focus, and was suffering from malaise.” She stopped working on her doctor’s advice in December of 2021 and submitted claims for short-term disability (STD) and LTD benefits. Her STD benefits were approved for the maximum duration by Unum, but Unum denied her LTD claim, contending that she did not meet the plan’s definition of disability throughout the waiting period, or “elimination period,” before benefits began. Her administrative appeal was unsuccessful, so she filed this action. The parties filed cross-motions for judgment, and after a de novo review of the record, the district court determined that Alexander had not proven that she was disabled throughout the LTD plan’s elimination period. The court entered judgment in Unum’s favor, and Alexander appealed to the Second Circuit. The appellate court reviewed the district court’s findings of fact for clear error and affirmed the judgment. The court noted that Alexander’s psychiatric care provider agreed she was not prevented from working from a cognitive standpoint, and she “presented only sparse evidence to support her claim of being unable to meet the light physical exertion requirements of her position throughout the elimination period[.]” At best, the Second Circuit ruled, the record “reveals two permissible views of the evidence,” and this was insufficient to support a reversal under the “clearly erroneous” standard of review. The court then addressed Alexander’s arguments and rejected them. Alexander argued that the approval of STD benefits during the LTD elimination period should have resulted in the approval of LTD benefits, but “nothing in the language of the plan suggests that Unum’s decision to grant Alexander short-term benefits is binding for purposes of whether she is eligible to receive long-term benefits as well.” The court also found no error in the district court’s decision to assign minimal weight to Alexander’s self-reported symptoms and focus on the lack of objective evidence supporting her claimed inability to work.  Finally, the court upheld the district court’s conclusion that Alexander failed to prove a lack of cognitive fitness, admitting that Alexander “marshals some evidence to the contrary,” but the district court’s conclusion was “‘plausible in light of the record viewed in its entirety’ and must therefore be upheld.” The Second Circuit thus affirmed.

Sixth Circuit

Johndrow v. Unum Life Ins. Co. of Am., No. 1:21-CV-296, 2026 WL 777232 (E.D. Tenn. Mar. 19, 2026) (Judge Charles E. Atchley, Jr.). David Johndrow was employed by the Massachusetts Medical Society in 2018 when he experienced sudden neck and head pain, leading to a diagnosis of occipital neuralgia and left shoulder pain. He stopped working and filed a claim under his employer’s long-term disability (LTD) benefit plan, insured by Unum Life Insurance Company of America. Unum initially denied his LTD claim, but later reversed its decision, finding him disabled due to mental illness. Based on this limitation, Unum terminated Johndrow’s benefits in March of 2021 based on the LTD plan’s 24-month limit on mental illness benefits. Meanwhile, Johndrow continued to pursue various treatments for his physical ailments, including nerve blocks, epidural injections, and surgeries, and was prescribed strong pain medications, including fentanyl and oxycodone. Johndrow appealed Unum’s decision, contending that his disability was not due to mental illness, but Unum upheld its decision, so Johndrow brought this action under ERISA seeking reinstatement of his LTD benefits. In 2022 the court ruled that Unum’s decision was erroneous, but rather than award benefits it remanded to Unum for “further factual development,” including an independent medical examination (IME). Unum conducted the IME and the case returned to court. Johndrow filed a motion for judgment on which the court ruled in this order. The court reviewed Johndrow’s medical records and concluded that he was physically disabled as of March of 2021 based on the preponderance of the evidence, which included assessments from treating physicians, neurocognitive evaluations, and the IME report. The court noted that Johndrow’s pain was not pharmacologically controlled, undermining the IME report’s conclusion that he could perform sedentary work if his pain was managed. The court emphasized the consistency of Johndrow’s medical records and the opinions of his treating physicians, who uniformly believed he was incapable of full-time work. The court concluded that Johndrow’s inability to control his headache pain and the resulting decrease in cognitive and physical capacity rendered him disabled under the policy. Consequently, “After four years of litigating its obligations under the Policy, Unum must now provide Johndrow with the benefits to which he has long been entitled.” The court awarded Johndrow LTD benefits from March of 2021 through the date of judgment.

Life Insurance & AD&D Benefit Claims

Sixth Circuit

Florentino v. Hartford Life & Accident Ins. Co., No. 3:24-CV-643-CHB, 2026 WL 751918 (W.D. Ky. Mar. 17, 2026) (Judge Claria Horn Boom). In 2023 Michael Florentino enrolled in $440,000 of ERISA-governed supplemental life insurance coverage, issued by Hartford Life and Accident Insurance Company, during his employer’s benefit open enrollment period. This included a “Guaranteed Issue Amount” of $200,000 and an additional $240,000 that required evidence of insurability. Michael completed a “Personal Health Application” (PHA) and answered “No” to a question asking, “Within the past 5 years, have you used any controlled substances, with the exception of those taken as prescribed by your physician, been diagnosed or treated for drug or alcohol abuse (excluding support groups), or been convicted of operating a motor vehicle while under the influence of drugs or alcohol?” Unfortunately, Michael had a history of opioid abuse, which he did not disclose in the PHA. This led to his death in February of 2024 from acute fentanyl and acetyl fentanyl intoxication. After Michael’s death, Hartford reviewed his medical records and rescinded the supplemental coverage, asserting that the PHA contained a material misrepresentation. His beneficiary, Jillian Florentino, appealed to no avail and then filed this action. The parties submitted cross-motions for judgment. They disputed which standard of review applied; Hartford argued for abuse of discretion based on plan language granting it discretionary authority while Jillian argued for de novo because she lived in Texas, which bans discretionary clauses in insurance policies. The court declined to rule on the issue because “Plaintiff’s claim fails regardless of which standard of review the Court applies.” The court applied federal common law in determining whether Hartford’s rescission was valid and ruled that the case was “remarkably similar” to a 2022 Sixth Circuit case (Campbell v. Hartford, discussed in our March 9, 2022 edition) in which Hartford prevailed. The court “struggles to distinguish the facts in the present case from Campbell’s[.]” The court noted that Michael “had a similar history of drug abuse and treatment at the time he made that misrepresentation,” he “admitted to abusing opioids within three years of applying for life insurance and within months after applying,” and was diagnosed with “continuous opioid dependence (disorder)” and “opioid dependence.” These misrepresentations were material because they affected Hartford’s risk and were “extremely important to the underwriting decision.” Jillian contended that Hartford (1) failed to establish Michael’s intent to deceive, (2) did not comply with the policy terms for contesting and rescinding coverage, and (3) did not remit insurance premiums to plaintiff, which she contended was a “condition precedent” for rescission. The court disagreed. The court held that (1) under federal common law, an insured’s good faith is irrelevant to the materiality analysis, and thus, Hartford did not need to prove Michael’s intent to deceive, (2) the “signature” and “copy” requirements in the policy’s incontestability clause applied only after the expiration of the two-year incontestability period, which had not occurred, and (3) there was no requirement under federal common law or the policy for Hartford to remit premiums as a condition precedent to rescission. (The court noted that Jillian was instructed to contact Michael’s employer for potential premium reimbursement.) As a result, the court granted Hartford’s motion for judgment and denied Jillian’s.

Medical Benefit Claims

Fifth Circuit

M.W. v. Health Care Serv. Corp., No. 3:24-CV-600-N, 2026 WL 773092 (N.D. Tex. Mar. 18, 2026) (Judge David C. Godbey). This is a dispute over health insurance coverage for L.W., the child of M.W., under an ERISA-governed health plan administered by Health Care Service Corporation, better known as Blue Cross Blue Shield of Texas (BCBSTX). L.W. received treatment at Innercept, a residential treatment center, in 2021 and 2022. When Innercept submitted claims, BCBSTX “voided its authorization” for coverage, offering three different explanations in its various explanations of benefits (EOBs): (1) the treatment was excluded from coverage; (2) it needed more information to process the claim; and (3) “the provider was not eligible to bill this type of service according to the provider’s credentials.” M.W. appealed and filed a complaint with the Texas Department of Insurance (TDI), but when BCBSTX responded to the TDI, it contended that it had never denied M.W.’s claim at all. BCBSTX admitted that it received M.W.’s appeal, but it “did not ‘complete [] an appeal because there was no denial’ for the authorization… Instead, BCBSTX ‘voided’ it because the request ‘did not meet the guidelines outlined in the member’s plan.’” M.W. and L.W. filed suit, asserting claims under ERISA and the Mental Health Parity and Addiction Act. They alleged that BCBSTX committed procedural violations under ERISA by failing to provide adequate notice and a full and fair review of its denial of benefits. Plaintiffs also contended that BCBSTX’s policy was more restrictive for mental health benefits compared to medical and surgical benefits, thus violating the Parity Act. The parties filed cross-motions for summary judgment which were decided in this order. The court agreed with plaintiffs that BCBSTX did not substantially comply with ERISA’s procedural requirements. Initially, the court “finds that voiding authorization is functionally equivalent to a denial. The Plan does not define what ‘voiding’ authorization is. Nor does it differentiate between denying and voiding a claim in its ‘Claim Filing’ procedures.” As a result, BCBSTX was obliged to comply with ERISA Section 1133 (“Claims procedure”), which it did not. Specifically, BCBSTX did not give plaintiffs “adequate notice in writing…setting forth the specific reasons for such denial” under Section 1133(1), and did not give plaintiffs “a full and fair review” under Section 1133(2). Under Section 1133(1), the court found that BCBSTX did not engage in a “meaningful dialogue” with plaintiffs. The court emphasized that oral communications and third-party responses did not satisfy the requirement for written notice. Thus, the “only qualified writings are the EOBs,” and these did not provide adequate written notice because they did not specify the reasons for the adverse determination or the specific plan provisions on which the determination was based. As for Section 1133(2), the court found that BCBSTX never conducted an appeal, in violation of the plan’s requirements. Thus, “Plaintiffs were not afforded an opportunity to address the accuracy and reliability of the evidence” used to “void” their claims. The court noted that in conducting this analysis, “BCBSTX cannot rely on its argument that Innercept did not qualify as a licensed facility because it did not give adequate notice to Plaintiffs it denied authorization for this reason.” As for plaintiffs’ Parity Act claim, the court chose not to address it, concluding that BCBSTX’s procedural violations were a “threshold issue” that must be resolved first. The court determined that the proper remedy was to remand the case to BCBSTX for a full and fair review, but with the proviso that “BCBSTX is barred from introducing arguments regarding Innercept’s licensure.” The court retained jurisdiction and stayed the case pending remand.

Tenth Circuit

E.W. v. Health Net Life Ins. Co., No. 2:19-CV-00499-DBB-DBP, 2026 WL 800480 (D. Utah Mar. 23, 2026) (Judge David Barlow). Plaintiff E.W. was a participant in an ERISA-governed health insurance plan insured and administered by Health Net Life Insurance Company. E.W.’s daughter, I.W., struggled with anxiety, depression, and anorexia, leading to her 2016 admission to Uinta, an adolescent mental health residential treatment facility. Health Net initially authorized coverage for I.W.’s treatment, but denied it in February of 2017, determining that further treatment was not medically necessary based on its clinical guidelines, the InterQual Criteria. I.W. remained at Uinta until December of 2017. Plaintiffs unsuccessfully appealed, and an independent review by the Arizona Department of Insurance also supported Health Net’s denial. As a result, plaintiffs filed this action in July of 2019, alleging that the denial of coverage violated ERISA and the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). The district court initially dismissed the MHPAEA claim and allowed the ERISA claim to proceed, and on cross-motions for summary judgment the court entered judgment for Health Net on the ERISA claim. Plaintiffs appealed to the Tenth Circuit, which affirmed summary judgment for Health Net on the ERISA claim. However, it reversed the dismissal of the MHPAEA claim, establishing a four-part test for such claims. (Your ERISA Watch covered this decision in our November 29, 2023 edition.) This ruling represented the district court’s effort to apply that test on remand. The court addressed standing first. Plaintiffs argued that Health Net’s denial of their claim rested on the application of the InterQual criteria, which violated the MHPAEA. The court ruled that this was sufficient to grant them standing because there was no finding that treatment was not medically necessary without the application of the InterQual criteria. Thus, the court turned to the merits. The court noted that “it is undisputed that the Plan is subject to the Parity Act and that it covers both mental health care and medical/surgical care. At issue is whether Health Net applied more restrictive limitations on mental health care than on medical/surgical care.” Plaintiffs advanced three arguments, none of which convinced the court. First, the court ruled that plaintiffs failed to establish that the InterQual criteria were not generally accepted standards of care for residential mental health treatment. The court noted that federal courts have recognized the widespread adoption of InterQual criteria, which were “developed by independent companies” and are used by “over 75% of hospitals nationwide.” The court also found that the InterQual criteria for residential treatment were not more stringent than the criteria for analogous medical/surgical care, such as skilled nursing facility (SNF) guidelines. The court found that “the residential treatment and SNF criteria both align with generally accepted standards of care and focus on whether the patient’s symptoms warrant treatment in a daily, round-the-clock facility or a less intensive setting. Moreover, the criteria used in the denials are ‘comparable’ to the SNF guidelines.” Finally, the court rejected plaintiffs’ argument that Health Net misapplied the InterQual criteria because the Tenth Circuit had already considered and dismissed this argument on appeal. The court deferred the issue of attorneys’ fees and costs, granting both parties leave to file supplemental briefing on the matter.

Eleventh Circuit

Mendoza v. Aetna Life Ins. Co., No. 23-13674, __ F. App’x __, 2026 WL 775293 (11th Cir. Mar. 19, 2026) (Before Circuit Judges Newsom, Lagoa, and Kidd). Dina Mendoza gave birth to twin daughters in 2020. However, the newborns required significant medical care, including an extended stay in the ICU, resulting in bills totaling a whopping $420,269. Insurance to the rescue? Unfortunately no. The treatment was billed to Aetna Life Insurance Company, which was Mendoza’s insurer through her ERISA-governed employee health plan. Aetna denied coverage under the plan’s coordination of benefits (COB) provision, contending that the twins’ father’s insurance carrier was the primary insurer. Mendoza argued that the newborns were not enrolled in the father’s plan and that his plan did not cover the newborns’ medical costs, making Aetna the primary insurer. However, when she filed suit the district court disagreed, dismissing her case with prejudice on the ground that she failed to state a claim. The district court determined that the COB’s “birthday rule,” which provides that “the plan of the parent whose birthday falls earlier in the calendar year covers dependent children of parents who are married or living together,” meant that the father’s plan was the primary insurance, and that Mendoza failed to address this issue. (Your ERISA Watch covered this decision in our September 20, 2023 edition.) Mendoza appealed. In this unpublished decision the Eleventh Circuit agreed in part with the district court. The court noted that Mendoza acknowledged that the father had his own plan, and thus “Mendoza was required to plausibly allege facts showing either that the terms of the father’s plan did not provide coverage for the newborns’ medical costs or that application of the COB provision’s birthday rule does not render her insurance plan secondary to the father’s plan. But Mendoza did neither.” Mendoza argued that she satisfactorily alleged generally that the newborns did not have insurance under the father’s plan, but this was not specific enough for the Eleventh Circuit: “[H]er allegations merely establish (1) that the father had a single-person insurance plan and (2) that the newborns were eventually enrolled in her plan, not the father’s.” These facts were only “consistent with Aetna’s liability, but, as pleaded in her complaint, without providing factual detail about why the father’s plan does not provide coverage, they do not make Aetna’s liability plausible.” The Eleventh Circuit also quickly rejected Mendoza’s arguments that the COB provision did not apply to newborn care and that the district court had impermissibly converted Aetna’s motion to dismiss into a motion for summary judgment. All was not lost for Mendoza, however: “[T]he same deficiencies that require dismissal also counsel in favor of permitting amendment.” The court noted that Mendoza could allege specific facts demonstrating that the father’s birthday fell later in the calendar year, or that the father’s insurance plan did not provide coverage, and that either of these “could have supplied the factual content necessary to nudge Mendoza’s claim from possible to plausible[.]” Thus, the court reversed and remanded in order to allow Mendoza to file an amended complaint, but cautioned that such a complaint “should allege specific facts,” “must be undertaken in good faith,” and should include a copy of the father’s plan. Surprisingly, this fairly straightforward decision spawned two concurrences. Judge Newsom “wr[o]te separately only to say that I think Dina Mendoza’s complaint was probably good enough to begin with,” but “because neither party attached the father’s insurance plan to their pleadings – which would presumably resolve the primary-carrier question – I have no objection to a remand for amendments.” Meanwhile, Judge Kidd agreed that Mendoza should be given leave to amend, but “for different reasons than my colleagues.” Judge Kidd contended that the district court erred by using the Eleventh Circuit’s Blankenship test to evaluate Mendoza’s complaint because that test “governs how courts review benefit-denial decisions, not how courts review whether a plaintiff has plausibly pleaded an ERISA claim.” As a result, Judge Kidd concluded that the district court had demanded too much from Mendoza. In the end, Mendoza will get another chance to plead her claim against Aetna, even if the Eleventh Circuit can’t agree why.

Pension Benefit Claims

Second Circuit

Seyboldt v. Linde, Inc., No. 3:23-CV-00209 (SRU), 2026 WL 788007 (D. Conn. Mar. 20, 2026) (Judge Stefan R. Underhill). Ann Seyboldt began working for Linde, Inc. in 1999 as a temp worker through a third-party employment agency. In 2003, she was directly hired by the company. Seyboldt contends that she was a common-law employee of Linde as of 1999 and thus eligible to participate in the company’s pension plan from that date forward. However, she alleges that she was not informed of her eligibility to participate in the plan under the legacy provisions, which she contends included her as a “common law employee,” when the plan was amended in 2002. Instead, the first plan document she saw was the 2003 summary plan description (SPD), which she received after her direct hire and used different language. In 2016 and 2019, Seyboldt inquired about her service credit, and in 2020, she was informed that her inquiry was being treated as a claim for benefits. That claim was denied on the ground that Seyboldt was not considered an employee during the relevant period. Seyboldt unsuccessfully appealed and then brought this action, alleging seven ERISA claims against Linde, the plan, and the plan’s administrative committee. After removing the case to federal court, and an amendment by Seyboldt, defendants filed a motion to dismiss. Seyboldt agreed to the dismissal of Linde as a defendant as well as three of her claims, so the court addressed the remaining claims. First, the court found that Seyboldt’s claims under ERISA § 502(a)(1)(B) were not barred by the six-year statute of limitations because the 2003 SPD did not constitute a clear repudiation of her entitlement to benefits. The SPD inaccurately summarized the plan’s eligibility criteria, and Seyboldt alleged that she did not learn of her eligibility until 2020, and thus her complaint, filed in 2022, was timely. Next, the court rejected defendants’ argument that the breach of fiduciary duties claim was duplicative, as plaintiffs are allowed to plead in the alternative. Furthermore, the court found it timely under ERISA’s six-year statute of repose because “the alleged breach is ongoing… Defendants still do not recognize Seyboldt’s service from December 1999 to December 2003.” Even if the breach were not ongoing, the court considered the date defendants finally denied Seyboldt’s claim as “the last action” for timeliness purposes, and that did not occur until 2020. Finally, the court concluded that Seyboldt plausibly claimed the 2003 SPD inaccurately summarized the plan’s eligibility criteria, misleading her about her rights and obligations under the plan. This constituted a violation of 29 U.S.C. § 1022, which requires SPDs to be “sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of their rights and obligations under the plan.” As a result, while Seyboldt agreed to dismiss some of her claims, and Linde as a defendant, she prevailed on all her remaining claims and the case will continue.

Sixth Circuit

Moshos v. Southwest Ohio Regional Council of Carpenters Pension Fund, No. 3:24-CV-165, 2026 WL 785035 (S.D. Ohio Mar. 20, 2026) (Judge Michael J. Newman). Kenneth Moshos is a carpenter, a member of the Southwest Ohio Regional Council of Carpenters, and a participant in the Southwest Ohio Regional Carpenters Pension Plan, an ERISA-governed multiemployer retirement plan. In 2014, at age 54, he elected to retire and begin receiving early retirement benefits under the plan. However, his early retirement benefits were suspended after he resumed work as a carpenter. (The plan required suspension of benefits for those working in the industry before reaching normal retirement age.) Moshos’ benefits remained suspended for over six years, through July of 2021. When Moshos reached his normal retirement age of 62, he applied for normal retirement benefits. However, he was informed that “his application for a pension benefit had been ‘approved’ but only for the lower amount of his early retirement benefit rather than the higher amount of his normal retirement benefits.” Moshos filed this action against the pension fund and its board of trustees challenging this decision. The parties filed cross-motions for judgment which were adjudicated in this order. The court reviewed the decision under the arbitrary and capricious standard of review because the plan granted the board discretionary authority to determine eligibility for benefits. Moshos argued that ERISA prohibited the forfeiture of his accrued normal retirement benefits and challenged the decision to pay him the reduced early retirement benefits instead of the full normal retirement benefits upon reaching normal retirement age. Defendants contended that its decision should be upheld because it was “a straightforward application” of the plan. The court ruled that the board’s decision failed to comply with ERISA’s non-forfeitability provisions and the Department of Labor’s suspension regulation, 29 C.F.R. § 2530.203-3(a). In so ruling, the court relied on the Sixth Circuit’s decision in Reichert v. Kellogg Co. (our case of the week, see above), which was issued only four days earlier. The court reasoned that the suspension regulation allows for the suspension of early retirement benefits only if it does not affect a retiree’s entitlement to normal retirement benefits or their actuarial equivalent. The court concluded that the board’s decision significantly reduced the total amount of benefits Moshos would receive over his lifetime, thus violating ERISA. Defendants contended that this interpretation “would effectively allow any early retiree in any defined benefit pension plan to reap windfall benefits at any time by participating in a minimal amount of Disqualifying Employment just before his normal retirement age.” However, the court minimized this concern, noting that such conduct would not significantly change the calculation of benefits. The court thus concluded that the board’s decision violated ERISA and was arbitrary and capricious. However, it did not rule in Moshos’ favor. The court noted that its analysis was predicated in part on its interpretation of Reichert, which the parties were not able to discuss in their briefs. As a result, the court denied both parties’ motions without prejudice and referred the case to mediation. If mediation is not successful, the parties will return to the court and file briefing addressing Reichert and the court’s order.

Eighth Circuit

Landel v. Olin Corp., No. 4:25-CV-00096-CMS, 2026 WL 785044 (E.D. Mo. Mar. 20, 2026) (Judge Cristian M. Stevens). Incredibly, this is our third case this week addressing the issue of “actuarial equivalence.” At issue is the Olin Corporation Employees’ Pension Plan, which is an ERISA-governed defined benefit plan. The plan offers two default types of pension benefits: single life annuities (SLAs) for single employees and joint and survivor annuities (JSAs) for married employees. JSAs provide a monthly benefit for the life of the participant and, upon their death, a benefit for the life of the participant’s spouse. The plan uses actuarial assumptions, including a steep 9.2% discount rate and the 1983 Group Annuity Mortality Table, to convert SLAs into “equivalent” JSAs. Plaintiffs Lou Ann Landel and Alvin L. Lewis are participants in the plan who are receiving benefits calculated under these assumptions. They contend that their benefits are lower than they should be because these assumptions are outdated. They filed this action against Olin and the plan’s administrative committee alleging (1) violation of 29 U.S.C. § 1055 by failing to use updated actuarial assumptions, thus not meeting ERISA’s “actuarial equivalence” requirement, and (2) breach of fiduciary duty under 29 U.S.C. §§ 1104 and 1106 “by using outdated actuarial figures to enrich themselves.” Defendants filed a motion to dismiss. At the outset, the court rejected defendants’ statute of limitations argument. The plan had a two-year limitation period which began running “after the individual receives information that constitutes a clear repudiation of the rights the individual is seeking to assert.” However, this limitation did not apply because plaintiffs “never experienced” such an event; “they do not claim that their rights under the Plan have been violated. Rather, Plaintiffs claim that the Plan as written violates the guarantees of ERISA… Thus, the Plan’s two-year limitations period does not apply here.” Turning to count one, the court ruled that plaintiffs’ interpretation of “actuarial equivalence” “is not supported by a plain reading of the text of 29 U.S.C. § 1055.” The court noted that ERISA does not define “actuarially equivalent” and assumed Congress intended the term to have its established meaning, which is that “[t]wo modes of payment are actuarially equivalent when their present values are equal under a given set of actuarial assumptions.” The court concluded that the plan’s use of a 9.2% interest rate and the 1983 Group Annuity Mortality Table met this definition. The court emphasized that ERISA “does not impose a substantive standard beyond actuarial equivalence” and that Congress did not include a reasonableness requirement in the relevant sections of ERISA. As for count two, the court determined that Olin did not have fiduciary duties because the named fiduciary of the plan was the committee, not Olin. The court further found that plaintiffs did not adequately allege a derivative breach of fiduciary duty by Olin or an underlying breach by the committee because the plan’s actuarial assumptions were permissible under ERISA, as discussed above. As a result, the court granted defendants’ motion to dismiss, with prejudice. This ruling is obviously contrary to the Sixth Circuit’s decision in Reichert (see above), so we expect to see this case make its way up to the Eighth Circuit.

Plan Status

Second Circuit

Coveny v. Cablevision Lightpath, LLC, No. 25-CV-1214-SJB-JMW, 2026 WL 787880 (E.D.N.Y. Mar. 20, 2026) (Judge Sanket J. Bulsara). Kevin Coveny was employed as a project manager for Cablevision Lightpath, LLC. In May of 2024, during a phone call with two vice presidents and a manager, Coveny requested additional time to review his projects in order to provide a status update. Following the meeting, one of the vice presidents “berated” him, which Coveny alleges led to health issues, including heart palpitations and chest discomfort. His cardiologist recommended a medical leave of absence, which Coveny took. While on leave, Coveny learned that Lightpath had introduced a Voluntary Retirement Incentive Program (VRIP). The VRIP was available to employees who were at least 60 years old, had at least ten years of service, and were in good standing. Employees on approved leave were eligible to participate. Coveny emailed Lightpath’s human resources department about the program, but was told that he was not eligible because “he was not in good standing.” In November of 2024, while still on leave, Coveny was terminated when his short-term disability leave transitioned to long-term disability. Coveny then filed this action, asserting three claims against Lightpath: (1) violation of ERISA § 510, (2) violation of ERISA § 502, and (3) disability discrimination in violation of the New York State Human Rights Law (NYSHRL). Lightpath moved to dismiss the ERISA claims, contending that the VRIP was not an employee welfare benefit plan under ERISA. At the outset, the court noted that “[t]he law in the Second Circuit is unclear as to whether the failure to allege an ERISA-covered ‘employee welfare benefit plan’ is a jurisdictional defect or merits pleading failure.” Regardless, the court applied “three non-exclusive factors” to determine whether the VRIP constituted an ERISA-governed severance plan: “(1) whether the employer’s undertaking or obligation requires managerial discretion in its administration; (2) whether a reasonable employee would perceive an ongoing commitment by the employer to provide employee benefits; and (3) whether the employer was required to analyze the circumstances of each employee’s termination separately in light of certain criteria.” The court found that the VRIP required little managerial discretion, as it involved a one-time, lump-sum payment based on explicit eligibility requirements and simple calculations. The court rejected Coveny’s argument that determining “good standing” required significant discretion, characterizing the discretion involved in determining “good standing” as “minimal.” The court also determined that no reasonable employee would perceive the VRIP as an ongoing commitment, as it offered a one-time payment without ongoing administrative requirements. Lastly, the court concluded that the VRIP did not require individualized analysis beyond simple calculations. The court debated what to do: “Although it is not clear whether such a dismissal should be on subject matter jurisdiction or merits grounds…the Court must make a choice between the two because it impacts the form of dismissal.” The court determined that “the failure is one on the merits – a failure to plead the necessary elements for such recovery.” As a result, it dismissed the claim with prejudice. The court declined to exercise supplemental jurisdiction over Coveny’s state law NYSHRL claim, and the case was closed.

Pleading Issues & Procedure

Eighth Circuit

Rivera v. Sedgwick Claims Mgmt. Servs., No. 24-CV-3247 (LMP/SGE), 2026 WL 788209 (D. Minn. Mar. 20, 2026) (Judge Laura M. Provinzino). In our July 16, 2025 edition we discussed this case brought by pro se plaintiff Ezequiel Rivera which arose out of an on-the-job injury he suffered while working in Wisconsin for Nestle, USA, Inc. He alleged that defendants Ace Fire Underwriters Insurance Company and Sedgwick Claims Management Services, Inc. conspired to deny him benefits, and asserted claims against them under ERISA, Title VII of the Civil Rights Act, and the Americans with Disabilities Act. Last year the court granted defendants’ motion to dismiss, ruling that Rivera did not properly allege the existence of an ERISA-governed plan, and furthermore, venue was not proper in Minnesota because the events giving rising to the suit all occurred in Wisconsin (where Mr. Rivera had already filed multiple other lawsuits that had all been dismissed). Rivera was undaunted. He moved to alter or amend the judgment under Federal Rule of Civil Procedure 59(e), and moved to disqualify the judge pursuant to 28 U.S.C. § 455(a). The court denied both of these motions in September of 2025. Rivera also appealed to the Eighth Circuit; that appeal is pending. Now, Rivera has filed a motion for relief from judgment under Federal Rule of Civil Procedure 60(b). The basis for Rivera’s motion was that a decision by the Wisconsin Labor and Industry Review Commission (WLIRC) “awarded Rivera $18,737.95 in wrongfully withheld disability benefits,” which constituted “newly discovered evidence.” Rivera asked to either amend his complaint or transfer the case to Wisconsin. The court denied Rivera’s motion. First, the court ruled that the WLIRC decision did not qualify as newly discovered evidence under Rule 60(b)(2) because it was not in existence at the time the judgment was entered. Furthermore, the decision did not justify extraordinary relief under Rule 60(b)(6) because it did not affect the court’s original decision to dismiss the case. The court noted that Rivera’s ERISA claim was dismissed because he failed to plead the existence of a plan, and the WLIRC decision did not address this issue. As for his retaliation claims, the WLIRC decision was irrelevant because “the Court did not dismiss Rivera’s claims because they lacked merit; the Court dismissed those claims because they were not properly brought in this District.” Furthermore, Rivera had already made the same argument regarding the WLIRC decision in one of his Wisconsin cases, and the court there had rejected it. Thus, “transferring the case would end with the same result: dismissal.” As a result, the court denied Rivera’s motion, declaring, “This case is therefore over.” We will see if Rivera agrees.

Ninth Circuit

Gadberry v. Life Ins. Co. of N. Am., No. 2:25-CV-00391-BLW, 2026 WL 765698 (D. Idaho Mar. 18, 2026) (Judge B. Lynn Winmill). Nathan Gadberry, who suffers single-sided deafness with an auditory processing disorder, was approved for benefits under an ERISA-governed long-term disability benefit plan by the plan’s insurer, Life Insurance Company of North America (LINA). However, LINA terminated those benefits, and after an unsuccessful appeal, Gadberry filed this action. Gadberry originally named LINA as the sole defendant, asserting one claim for plan benefits under ERISA. However, in this motion he sought to amend his complaint to add claims and defendants. He proposed four new defendants: New York Life, his employer (Science Applications International Corporation (SAIC)), SAIC’s Benefits Committee, and SAIC’s Health and Welfare Benefits Plan. Gadberry’s proposed complaint contained three claims for relief: (1) plan benefits pursuant to 29 USC § 1132(a)(1)(B); (2) “appropriate equitable relief, declaratory relief, reformation, equitable surcharge, [and] injunctive relief pursuant to 29 U.S.C. § 1132(a)(3)”; and (3) in the alternative, similar equitable relief under 29 U.S.C. § 1132(a)(3) and/or 29 U.S.C. § 1132(a)(1)(B). LINA contended that the new claims under Section 1132(a)(3) were “unnecessary,” but did not oppose Gadberry’s motion to add them. However, LINA did object to the addition of New York Life as a defendant, arguing that “this entity ‘played no role in Plaintiff’s LTD claim or its appeal.’” LINA submitted a declaration to this effect, but the court ignored it because “[a]t this procedural stage, the Court’s task is to simply determine whether the proposed amended pleading satisfies Rule 8 by setting forth a cognizable legal theory supported by factual allegations.” It turned out that the declaration was unnecessary, because the court ruled that “Gadberry has failed to plausibly allege claims against New York Life.” The court found that the proposed amended complaint did not plausibly allege that New York Life exercised control over the plan or acted in a capacity that would subject it to liability under ERISA. The court noted that the complaint “contains a single allegation addressing the role of New York Life” in which Gadberry contended that New York Life “controlled the disability insurance policy/plan at issue in this case.” The court ruled that this was conclusory and “does not provide sufficient factual detail.” Furthermore, “the proposed amended complaint’s broader allegations obscure rather than clarify the identity of who did what.” For similar reasons, the court also found that the proposed amended complaint failed to plausibly assert claims against New York Life under ERISA § 502(a)(3) due to the lack of factual allegations supporting an inference that New York Life sufficiently exercised discretion in the denial of Gadberry’s claim to make it a fiduciary under ERISA. Thus, the court denied Gadberry’s motion to the extent he sought to add New York Life as a defendant. The denial was without prejudice, however; the court allowed Gadberry an opportunity to file a revised, proposed amended complaint to cure the identified deficiencies.

Trauernicht v. Genworth Fin. Inc., No. 24-1880, __ F.4th __, 2026 WL 667917 (4th Cir. Mar. 10, 2026) (Before Circuit Judges Niemeyer, Agee, and Richardson)

This week’s notable decision addresses the interaction between ERISA’s remedial scheme and the federal rules governing class actions. Plaintiffs often bring breach of fiduciary duty claims under ERISA pursuant to Section 502(a)(2), which authorizes plan participants to sue on behalf of the plan. Federal Rule of Civil Procedure 23 further allows participants to bring such claims as a class action if they can satisfy all the Rule’s requirements.

Section 502(a)(2) class actions are often straightforward in the context of a traditional defined benefit plan such as a pension plan. All of the plan assets are held in one place, and thus a breach of duty typically affects the plan as a whole, affecting the participants similarly. Thus, a mandatory class action encompassing all plan participants makes sense.

But what if the plan is a more modern defined contribution plan? In this scenario a breach of fiduciary duty likely will not affect everyone similarly because the plan assets are squirrelled away in individual accounts. These accounts may be invested in a number of different assets and can change on a regular basis. Should a mandatory class action be allowed under these circumstances? The Fourth Circuit tackled this issue in this published opinion. Its conclusions could significantly alter the way investment performance cases are brought in the future.

The plaintiffs were Peter Trauernicht and Zachary Wright, former employees of Genworth Financial, Inc. Both participated in the company’s defined contribution retirement plan, the Genworth Financial Plan, which has accounts for more than 4,000 participants and a total value exceeding $900 million.

The company allows participants to choose from a suite of roughly a dozen investment options, in addition to Genworth stock. One of these options was “Diversified Pre-mixed Portfolios (Target Date Funds) [‘TDFs’],” which was where Trauernicht and Wright placed their money. Trauernicht invested in three vintages of the BlackRock LifePath Index Funds – the 2050 Fund, the 2040 Fund, and the Retirement Fund – while Wright invested solely in the 2050 Fund.

These funds were passively managed, aimed at tracking specific indices, and charged relatively low fees. They also received high ratings from industry trackers like Morningstar. However, Trauernicht and Wright were unhappy with the funds’ performance and filed this action contending that Genworth breached its fiduciary duties under ERISA “by failing to appropriately monitor the performance of the BlackRock LifePath Index Funds, resulting in the imprudent retention of those funds in the Plan, in violation of ERISA.”

Genworth filed two motions to dismiss. The district court granted the first one, rejecting plaintiffs’ claim for injunctive relief because they had withdrawn from the plan and thus lacked standing to obtain prospective relief. However, the court denied Genworth’s second motion, ruling that plaintiffs plausibly alleged that Genworth breached its fiduciary duty. (Your ERISA Watch covered this decision in our September 20, 2023 edition.)

Plaintiffs then filed a motion for class certification, which the court granted, certifying a class of “Plan participants and beneficiaries whose accounts were invested in the BlackRock TDFs during the Class Period,” dating back to 2016. The court certified the class as a mandatory class under Federal Rule of Civil Procedure 23(b)(1), i.e., a class without notice and opt-out requirements. The court explained that a mandatory class was appropriate due to the derivative nature of plaintiffs’ claims, which were brought on behalf of the plan as a whole under ERISA Section 502(a)(2). (Your ERISA Watch reported on this decision in our August 21, 2024 edition.)

Genworth appealed to the Fourth Circuit. Genworth contended that the district court erred by “certifying a mandatory class under Rule 23(b)(1) for claims seeking individualized monetary relief.” In response, plaintiffs contended that ERISA Section 502(a)(2) “authorize[d] them to bring a representative action on behalf of the Plan to recover all losses sustained by the Plan as a result of the alleged breach of fiduciary duty and that, as a result, claims under these sections are ‘paradigmatic examples of claims appropriate for certification as a Rule 23(b)(1) class.’”

In determining who was right, the court emphasized that the plan was a defined contribution plan, and thus “the assets of the plan are allocated to participants’ individual accounts,” as opposed to a defined benefit plan, where “the assets of the plan are held collectively and then are used to pay the defined and fixed benefits that the employer promised to plan participants.”

The court explained that in a defined benefit plan “a plan participant injured by a fiduciary’s breach must, by necessity, seek losses on behalf of the plan as a whole – there is no other way ‘to make good to such plan [the] losses to the plan resulting from [the fiduciary] breach.’”

However, defined contribution plans are different because “the plan assets are allocated to individual accounts, and a participant’s ‘benefits [are] based solely upon the amount’ held in his individual account.” Thus, when a participant brings a claim under Section 502(a)(2) in this context, he is seeking “monetary relief, again on behalf of the plan, for the losses sustained with respect to the plan assets in his individual account.” This recovery is not paid to the plan or the participant, but “to the participant’s individual retirement account based on the losses that particular account sustained as a result of the fiduciary breach.”

The court discussed the Supreme Court’s decisions in Massachusetts Mutual Life Ins. Co. v. Russell, and LaRue v. DeWolff, Boberg & Assocs., Inc., on this issue, concluding that they supported the conclusion that “ERISA § 502(a)(2) and § 409(a) may apply differently depending on whether the retirement plan at issue is a defined benefit plan or defined contribution plan.” As a result, “We thus conclude that in the context of a defined contribution plan, a participant’s damages claim under § 502(a)(2) is an ‘individualized monetary claim.’”

This conclusion doomed plaintiffs’ mandatory class action under Rule 23(b)(1). The court emphasized that Rule 23(b)(1) is limited to cases where individual adjudications would be “impossible or unworkable,” while “individualized monetary claims belong in Rule 23(b)(3).” Because plaintiffs’ claims fell in the second category, a mandatory class action was inappropriate. The court further noted “a constitutional dimension to the principle against aggregating individualized damages claims as part of a mandatory class,” because the “absence of notice and opt out violates due process[.]”

The court then addressed Genworth’s second argument, which contended that the district court erred by “fashioning a…per se rule that ERISA fiduciary-duty claims [under § 502(a)(2)] ‘inherently’ satisfy Rule 23(a)(2)’s requirement of commonality.” The Fourth Circuit agreed with this objection as well. The court emphasized that the commonality prerequisite requires “‘a common contention’ that is ‘of such a nature that it is capable of classwide resolution.’” Here, the district court did not “conduct a ‘rigorous analysis’ of commonality” and instead “postponed” it by finding that Section 502(a)(2) claims are “inherently” common.

This was incorrect because of the potential for different class members suffering different injuries – or even no injuries. The court stated that “each plaintiff, as well as each class member, participated in the plan in a materially different way.” The class members could choose their own funds, change those decisions at any time, and withdraw their investments at any time. The district court did not address these facts with particularity and instead used an “overgeneralized” approach that relied on mistaken “inherent” commonality.

As a result, the Fourth Circuit reversed the district court’s class certification and remanded for further proceedings. The plaintiffs must now decide whether to pursue class certification by a different route, or forgo it altogether.

Below is a summary of this past week’s notable ERISA decisions by subject matter and jurisdiction.

Breach of Fiduciary Duty

Third Circuit

Jacobs v. Hackensack Meridian Health, Inc., No. 25CV1272 (EP) (CF), 2026 WL 710229 (D.N.J. Mar. 13, 2026) (Judge Evelyn Padin). The plaintiffs in this putative class action are current or former participants in ERISA-governed retirement plans sponsored by Hackensack Meridian Health, Inc. (HMH). The plans are defined contribution retirement plans under ERISA, allowing participants to make tax-deferred contributions from their salaries. Plaintiffs allege that HMH, as a fiduciary of the Plans, “breached its duties of loyalty and prudence by: (1) offering and allowing substantial assets in the Plans to be invested in the TIAA Stable Value Fund (‘TIAA SVF’) – an underperforming investment option; and (2) failing to pay reasonable recordkeeping and administration fees (‘RKA’) services for the Plans.” Plaintiffs contended that when the TIAA SVF was available, “‘identical or substantially similar stable value funds’ with higher crediting rates were also available, but Defendant did not select those better-performing plans to be included in the Plans… Defendant allegedly violated its fiduciary duty of prudence by allowing substantial assets in the Plans to be invested in the TIAA SVF instead of other stable value funds with higher crediting rates.” Furthermore, plaintiffs contended that the $45 per participant RKA fee they paid “was almost double the average” of “thirty-five plans similar in size to the Plans when combined[.]” HMH moved to dismiss. Addressing plaintiffs’ failure to monitor claim first, the court acknowledged that “the Third Circuit has not explicitly used the terms ‘meaningful benchmark’ to describe what a plaintiff must plead in this context, but it has endorsed that language used in cases from other Circuits,” and thus applied that standard to plaintiffs’ complaint. The court concluded that plaintiffs had not met this standard because the two comparators they selected were “general account GICs [guaranteed investment contracts]” instead of “separate account GICs” like the TIAA SVF, and plaintiffs “do not provide the Court with sufficient facts to determine whether these funds are substantially similar.” The court thus granted HMH’s motion regarding its alleged failure to monitor, although it gave plaintiffs leave to amend. Turning to plaintiffs’ excessive RKA fee claim, the court found that plaintiffs provided sufficient circumstantial evidence to support their claim. Plaintiffs (1) included a chart comparing the RKA costs in the HMH plans to similar plans, (2) alleged that HMH did not conduct an RFP (request for proposal), which might have identified a lower-fee servicer, and (3) explained that the recordkeeping market is competitive, and that HMH had considerable bargaining power because its plans were “jumbo plans,” which should have resulted in lower fees. The court ruled that these allegations, “when considered holistically, raise the inference that Defendant violated its fiduciary duty of prudence.” HMH contended that plaintiffs had miscalculated the fees at issue, but the court rejected this argument because it was not based on information publicly available to plaintiffs, and thus could not be used against them at the pleading stage. As a result, plaintiffs’ RKA fee claim survived.

Fifth Circuit

Chavez-DeRemer v. Sills, Civ. No. 23-41-SDD-SDJ, 2026 WL 700073 (M.D. La. Mar. 12, 2026) (Judge Shelly D. Dick). The Department of Labor brought this action against Coastal Bridge Company, LLC, and its owner, Kelly Sills, alleging multiple violations of ERISA arising from their misadministration of Coastal’s self-insured employee health plan. The DOL contends that between September of 2019 and January of 2020 Coastal withheld contributions from employees’ paychecks, but frequently failed to pay premiums for coverage under the plan. This led to multiple denied or delayed health insurance claims for at least 78 employee participants due to lapses in coverage. The DOL obtained a default judgment against Coastal in 2023, and now brings this motion for summary judgment against Sills, who is representing himself. At the outset, the court expressed considerable frustration at Sills because he “has repeatedly failed to follow the Federal Rules of Civil Procedure and the Local Rules for the Middle District.” Sills did not conduct any discovery and did not comply with discovery orders. Furthermore, Sills filed multiple briefs without leave of court, and in those briefs he did not offer admissible evidence to support his claims and “has not advanced a single legal theory or argument supported by any applicable authority.” Most importantly, Sills failed to submit an opposing statement of material facts. As a result, the court deemed as admitted all of the factual assertions in the DOL’s statement of uncontested material facts. Those facts demonstrated that Sills (1) “oversaw and was responsible for all activities of Coastal,” (2) “was a fiduciary of Coastal for purposes of ERISA,” (3) “intentionally failed to comply with ERISA,” including “refus[ing] to implement a run-out agreement…which…would have resulted in restoring health care coverage,” and (4) “withheld insurance payments from his employees but did not use that money to pay for their insurance coverage.” The court further found that Coastal’s May 2020 payment, signed by Sills, “did not cover all unpaid claims,” and the “balance remains $209,466.34, plus prejudgment interest.” The court ruled that “Coastal and Defendant are responsible for all unpaid claims during the suspension of the [administrative services agreement], claims not reprocessed after reinstatement of insurance coverage, and all run-out claims.” Furthermore, Nationwide Mutual Insurance Company, which issued various performance and payment bonds naming Coastal as principal, “is not responsible for Defendant’s and/or Coastal’s ERISA violations.” The court found that “Nationwide never had any role whatsoever regarding medical claims associated with the Plan, specifically but not limited to those medical claims that went unpaid or uncovered.” As a result, the court granted the DOL’s motion for summary judgment and ordered it to submit a proposed judgment.

Eighth Circuit

Batt v. 3M Co., No. 25-CV-3149 (ECT/DTS), 2026 WL 674322 (D. Minn. Mar. 10, 2026) (Judge Eric C. Tostrud). The plaintiffs in this case are current or former employees of the 3M Company who invested in target-date funds (TDFs) available in 3M’s ERISA-governed retirement plans. Plaintiffs alleged that these funds underperformed the relevant S&P indices and other comparable TDFs “on annual and trailing 3-, 5-, and 10-year bases, and cumulatively.” Plaintiffs asserted two claims under ERISA against 3M, its board of directors, its investment committee, and other related defendants. The first alleged that defendants breached their duty of prudence by failing to remove the 3M TDF Series funds from the plans, while the second alleged that defendants failed to monitor the performance of those who owed fiduciary duties to the plans. Defendants moved to dismiss for failure to state a claim, arguing that plaintiffs failed to demonstrate that their proffered indices and TDFs were “meaningful benchmarks” for the 3M TDFs. The court noted that its inquiry must be “context-specific,” and ultimately ruled that plaintiffs’ allegations were too “high-level.” The court rejected plaintiffs’ reliance on the S&P indices because their allegations showed that “roughly half of the surveyed target-date funds benchmarked against the S&P Indices,” which meant that “roughly half did not. In other words, this figure does not show TDF-industry acceptance any more than it shows industry reluctance to benchmark against the S&P Indices.” Furthermore, “the Complaint must plausibly allege that all TDFs are meaningful benchmarks for all other TDFs, or it must allege that the S&P Indices and 3M TDF Series share like composition… The Complaint does not include either allegation.” The complaint also failed to allege that the 3M TDFs were designed to track the S&P indices. The court further rejected plaintiffs’ comparator TDFs, ruling that “characteristics such as size, category, and risk ratio” were insufficient on their own to be a fair comparison. Moreover, the court noted that some of plaintiffs’ risk ratio comparisons were inaccurate; some of plaintiffs’ comparator funds were designed with “through retirement” glidepaths instead of “to retirement,” as the 3M funds were designed, or had different asset allocations. Next, the court addressed plaintiffs’ underperformance allegations, accepting that they “have plausibly alleged that the 3M TDF Series underperformed the Comparator TDFs,” noting returns trailing by as much as 13%. However, the court found that the underperformance relative to the S&P indices was “moderate and inconsistent,” and thus did not plausibly state a claim for relief. As a result, the court granted defendants’ motion to dismiss. However, “Plaintiffs could conceivably plead facts making it plausible that the proffered comparator TDFs are meaningful benchmarks,” and thus the dismissal was without prejudice.

Class Actions

Seventh Circuit

Shaw v. Quad/Graphics, Inc., No. 20-CV-1645-PP, 2026 WL 710944 (E.D. Wis. Mar. 13, 2026) (Judge Pamela Pepper). This is a five-year-old class action in which the plaintiffs contended that Quad/Graphics, Inc. and its board of directors mismanaged the company’s ERISA-governed employee retirement plan. Last year the court preliminarily approved a $850,000 settlement, and on February 18, 2026, it held a fairness hearing. In this brisk order the court marched through the requirements for final approval and found the settlement fair, reasonable, and adequate. The court stated that the settlement resulted from negotiations conducted at arm’s length by experienced and competent counsel, overseen by a neutral mediator, that the negotiations occurred after class counsel received sufficient information from defendants to assess the value of the case, and the settlement avoided the expense, risk, and uncertainty of extended litigation for both parties. The settlement amount was fair considering the nature of the claims, potential recovery, litigation risks, and similar case settlements. The court noted that class members had the opportunity to object to the settlement, but none did so. Furthermore, an independent fiduciary, Newport Trust Company, LLC, reviewed and approved the settlement on behalf of the plan. The court also approved plaintiffs’ motion for attorney fees, costs, administrative expenses, and a case contribution award. In the end, the action and all released claims were dismissed with prejudice, and the class members were barred from pursuing any further claims related to the released claims. The court retained jurisdiction for enforcing and interpreting the final approval order and the settlement agreement.

Disability Benefit Claims

Ninth Circuit

Darden v. Anthem Blue Cross Life & Health Ins. Co., No. 25-CV-00911-RFL, 2026 WL 708311 (N.D. Cal. Mar. 13, 2026) (Judge Rita F. Lin). In 2021, Michael Darden began receiving benefits under Nuro, Inc.’s ERISA-governed long-term disability employee benefit plan from the plan’s insurer, Anthem Blue Cross Life and Health Insurance Company. However, Anthem closed his claim in 2023, contending that no further benefits were payable pursuant to the plan’s 24-month limitation for mental illnesses. Darden was subsequently approved for Social Security disability benefits. Anthem denied Darden’s appeal and thus he filed this action in January of 2025. In it he alleged one claim for relief under 29 U.S.C. § 1132(a)(1)(B), in which he “asked for a declaration that Anthem violated the terms of the plan, he was entitled to monthly benefits until July 2033, and Anthem had ‘no entitlement to recoup any overpayment to Plaintiff that the Plan’s Administrator’s described failures have caused.’” In August of 2025 Anthem re-reviewed Darden’s claim and reversed itself. It approved the claim retroactively to the termination date after finding that the mental illness limitation did not apply and Darden was unable to perform the duties of any occupation. As a result, Anthem paid retroactive benefits to Darden. However, it informed Darden that there was an overpayment due to his receipt of Social Security benefits, which was an offset under the plan, and it reduced the benefits it paid by the estimated amount of those benefits. The parties filed cross-motions for judgment under Federal Rule of Civil Procedure 52. The court ruled that Darden’s claim was not moot, despite Anthem’s reversal, because there was a live controversy over the offsets applied by Anthem. The court determined that the best course of action was to remand the case to Anthem “so it can resolve the dispute over offsets in the first instance.” The court noted that “the record contains minimal evidence about how these offsets were calculated, so it would be inappropriate to determine as a matter of law that the offsets are permissible and properly calculated.” Next, the court noted that Darden had requested “various forms of equitable relief,” including “restitution of the offset benefits, a related injunction, surcharge for financial harm, transfer of his claim to a different company affiliated with Anthem, and referral to the Department of Labor’s Employee Benefits Security Administration.” However, although the court sympathized with Darden (“[h]is frustration with Anthem is understandable”), the court ruled that it could not award these equitable remedies because Darden had not pled an equitable cause of action in his complaint. As a result, the court granted Darden’s motion, denied Anthem’s, and the case was remanded to Anthem “for further proceedings concerning the validity and calculation of offsets based on his Social Security disability benefits.”

Discovery

Seventh Circuit

Schulmeier v. Lincoln Nat’l Life Ins. Co., No. 1:24-CV-284-CCB-ALT, 2026 WL 668269 (N.D. Ind. Mar. 9, 2026) (Judge Cristal C. Brisco). Julie Schulmeier brought this action seeking benefits under an ERISA-governed disability benefit plan. Schulmeier served discovery seeking information regarding the number of claims terminated or denied by the physician who reviewed her claim, seeking to demonstrate that there was bias or were procedural defects in Lincoln’s claim handling. Lincoln objected, and Schulmeier brought a motion to compel. The assigned magistrate judge denied her motion, and Schulmeier requested review by the district court judge. In this order, the court upheld the magistrate’s ruling. The court noted that in the Seventh Circuit “discovery in ERISA cases is the exception, rather than the norm,” and is “only allowed in ‘exceptional’ cases.” As a result, Schulmeier “must show two things: (1) that there is prima facie evidence of bias or misconduct that would call into question the fairness of the claim evaluation, and (2) that there is good cause to believe that the requested discovery will reveal an actual procedural defect.” However, Schulmeier “fails on both prongs.” The only evidence she presented was that the claim evaluator was paid by the insurance administrator, which was insufficient to demonstrate bias under Seventh Circuit precedent. Furthermore, the type of discovery Schulmeier requested – a list of all claims denied or terminated by the claim evaluator – “would not cast any light on the procedures or bias in this specific case.” The court noted that the Seventh Circuit “has declined to reference general statistics when evaluating bias[.]” As a result, the magistrate judge’s decision was neither “clearly erroneous” nor “contrary to law,” and thus Schulmeier’s motion was denied.

Medical Benefit Claims

Fifth Circuit

Antohi v. Aetna Life Ins. Co., No. 3:25-CV-00267-LS, 2026 WL 690001 (W.D. Tex. Mar. 5, 2026) (Judge Leon Schydlower). In this very brief order, the background facts are difficult to discern. The plaintiffs are Dr. Octavian Antohi and Cherryl Antohi, and they have sued Aetna Life Insurance Company, Optum RX, and Tenet Healthcare Corporation under ERISA for failing to provide healthcare plan documents and breach of fiduciary duty. Aetna and OptumRX filed motions to dismiss for failure to state a claim, and the court granted both in this order. On plaintiffs’ first claim, the court noted that ERISA only requires plan administrators to respond to requests for plan documents, and “the plan in this case expressly names Tenet as both administrator and sponsor.” Plaintiffs offered no facts to support their argument that OptumRX was the plan administrator, and they “fail to allege that they requested plan documents from Aetna, much less that Aetna is the plan administrator.” Plaintiffs contended that even if Aetna and OptumRX were not administrators, they were fiduciaries “that play a role in the denial of a claim.” However, the court noted that this was insufficient to confer a statutory duty on them to provide plan documents. Furthermore, the court noted that plaintiffs did not even allege what documents were withheld, which “prevents any analysis about whether the documents fall within the statute’s ambit.” As for plaintiffs’ breach of fiduciary duty claim, the court ruled that plaintiffs could not obtain injunctive relief under ERISA § 1132(a)(3) because they had adequate relief available through their right to sue the plan directly under § 1132(a)(1). Plaintiffs had already sued the plan, through Tenet, under § 1132(a)(1), and thus this claim “bars any ostensible claim against Aetna and Optum RX under 1132(a)(3).” As a result, the court dismissed all claims against Aetna and Optum RX; the case will proceed against Tenet.

Ninth Circuit

Brian W. v. Premera Blue Cross of Washington, No. C24-0154-KKE, 2026 WL 710140 (W.D. Wash. Mar. 13, 2026) (Judge Kymberly K. Evanson). Brian W. was a participant in an ERISA-governed employee health benefit plan insured by Premera Blue Cross of Washington, which covered the mental health treatment of his son, A.W. A.W. exhibited severe behavioral issues from a young age, including aggression and suicidal ideation, leading to multiple hospitalizations and residential treatments. In 2016, A.W. began treatment at Cherry Gulch, a therapeutic boarding school in Idaho, and in 2019 he received treatment at Heritage School, a residential treatment center in Utah. Premera denied coverage for A.W.’s treatment at Cherry Gulch, “articulat[ing] evolving reasons for denying coverage.” At first Premera stated that Brian W. failed to timely submit his claim, then it said there was no prior authorization, even though the penalty for that did not allow for denying the claim, then it said it needed more information, then it referred the claim to a peer reviewer who found no medical necessity, but when it upheld the denial it did not invoke medical necessity and instead told Brian W. that the plan excluded coverage for A.W.’s treatment because Cherry Gulch was not properly licensed. As for the Heritage School claim, Premera determined that the treatment A.W. received there was not medically necessary, but when Brian W. appealed, Premera contended that it was missing documents, never asked Brian W. for those documents, never told him it needed more information, and then never issued a decision on his appeal, despite a complaint filed by Brian W. with Washington’s insurance commissioner. Exasperated, Brian W. filed this action under ERISA seeking payment of plan benefits and asserting breach of fiduciary duty. The parties filed dueling motions on the merits which the court construed as cross-motions for judgment under Rule 52. The parties agreed that the default de novo review was appropriate. Addressing the Cherry Gulch claim first, Premera contended that A.W.’s treatment was not medically necessary, “[b]ut Premera never cited medical necessity as the basis for denying the claim in its letters, and it cannot do so now.” As a result, Premera was stuck with its licensing argument, which the court rejected: “Premera makes no arguments defending this rationale, relying instead only on the medical necessity of the treatment.” In response, “Brian W. has presented uncontested evidence that Cherry Gulch was licensed at all relevant times by the Idaho State Department of Health and Welfare to operate as a Children’s Residential Care Facility.” Thus, the court reversed Premera’s Cherry Gulch decision and awarded judgment to Brian W. Moving on the Heritage claim, the court ruled that Premera’s denial incorrectly stated that the plan did not cover residential mental health treatment, and that A.W.’s treatment was in fact medically necessary. The court found that the Heritage treatment satisfied the four contested elements of medical necessity under the plan because (1) “a physician, exercising prudent clinical judgment, would provide [it] to a patient,” (2) it was consistent with “generally accepted standards of medical practice,” (3) it was “‘[c]linically appropriate, in terms of type, frequency, extent, site and duration, and considered effective for the patient’s’ condition, and (4) it was “not primarily for the convenience of the patient or provider or more costly than equally effective alternatives.” The parties argued over which “generally accepted standard” the court should use – Brian W. argued for CALOCUS/CASII while Premera argued for Interqual – but the court ruled that it did not matter because A.W.’s treatment satisfied both. Premera contended that if the court ruled in Brian W.’s favor on the Heritage claim, it should remand to Premera for further review because it never completed its appeal, but the court declined, finding that its claim review process “fell well short of the ‘full and fair review’ ERISA mandates.” Premera’s denial offered no support for its conclusion, it never responded to Brian W.’s appeal because “[a]pparently, the appeal was lost,” and Premera misread Brian W.’s complaint to the insurance commissioner, thinking he was referring to the Cherry Gulch claim. As a result, “Forcing Brian W. to slog through the administrative process again after Premera failed to meaningfully participate in that process the first time is unwarranted[.]” Finally, the court dismissed Brian W.’s claim for breach of fiduciary duty, ruling that payment of benefits was adequate relief and thus no equitable remedy was necessary. The court ordered the parties to meet and confer and submit a proposed judgment.

Pension Benefit Claims

Sixth Circuit

Local 55 Trustees of the Iron Workers’ Pension Plan v. Prince, No. 3:25 CV 1962, 2026 WL 693119 (N.D. Ohio Mar. 12, 2026) (Judge James R. Knepp II). Warren Prince was an iron worker and a participant in the ERISA-governed multiemployer pension plan managed by Local 55 Trustees of the Iron Workers’ Pension Plan. In 2013, Warren designated his son Matthew as the primary beneficiary of his pension benefits. In 2022, Warren passed away. The plan provided that pre-retirement death benefits should be paid to either the decedent’s beneficiary or the surviving eligible spouse. Because Local 55 was unaware of any surviving spouse, it approved Matthew’s claim and began paying him death benefits in September of 2022. More than three years later, Darlene Prince contacted Local 55, claiming to be Warren’s surviving spouse; in support she provided a 1993 marriage certificate from New York. In August of 2025 Local 55 conducted a meeting to determine the rightful beneficiary. At the meeting Matthew submitted evidence, including a 2003 marriage license and a 2009 divorce judgment from Mississippi involving Warren and another woman, as well as Facebook posts by Darlene suggesting that she had married someone else. Local 55 chose not to resolve the impasse and instead filed this interpleader action. Darlene responded by filing a cross-complaint against Matthew seeking (1) a declaratory judgment recognizing her as Warren’s surviving spouse and the rightful beneficiary, and (2) equitable restitution from Matthew for his unjust receipt of Warren’s pension benefits to date. At issue in this order was Matthew’s motion to dismiss the second claim. In it, Matthew contended that the relief Darlene sought was legal, not equitable, and thus unavailable under ERISA § 502(a)(3). As the court put it, “the operative question at this stage is whether Darlene’s request for ‘equitable restitution’ falls within the scope of § 1132(a)(3)’s ‘other appropriate equitable relief’ language as a matter of law.” Matthew argued that Darlene’s claim failed because it “‘identifies no segregated fund or lien by agreement’ to which an equitable claim for the restitution of property may attach,” and that “the remedy sought by Darlene is, in effect, ‘repayment of general funds – legal damages not available under’ § 1132(a)(3).” The court disagreed. It ruled that Darlene had identified a specific fund of money, the pre-retirement death benefits paid to Matthew, as the subject of her claim, and that she had alleged they were “traceable and thus recoverable.” Matthew contended that “no specifically identifiable funds remain in his possession,” but the court ruled that this was an issue of fact and thus not resolvable on a motion to dismiss. The court also addressed three other arguments made by Matthew in support of his motion, finding them all without merit. First, the court rejected Matthew’s claim that Darlene failed to plausibly allege she was Warren’s surviving spouse, noting that Darlene’s factual assertion of her status must be accepted as true at this stage. Second, the court dismissed Matthew’s argument that Darlene’s counter-claim was duplicative of the interpleader action, ruling that the interpleaded funds only consisted of “those funds yet to be paid on Warren’s pre-retirement death benefit,” and did not include benefits already paid to Matthew, which was what Darlene sought to recover in her counter-claim. Third, the court ruled that Matthew’s laches argument regarding the timeliness of Darlene’s claim was not grounds for dismissal because it was an affirmative defense that “has no bearing on whether Darlene plausibly plead a claim for equitable restitution in the first instance sufficient to survive a Rule 12(b)(6) challenge.” As a result, the court denied Matthew’s motion and the case will proceed.

Ninth Circuit

Metaxas v. Gateway Bank, F.S.B., No. 20-CV-01184-EMC, 2026 WL 673787 (N.D. Cal. Mar. 10, 2026) (Judge Edward M. Chen). This is a long-running case by Poppi Metaxas, the former president and CEO of Gateway Bank, for benefits under Gateway’s supplemental executive retirement plan (SERP). Metaxas was suspended by the bank in 2010 for engaging in fraudulent transactions to conceal Gateway’s financial condition. Eventually, she pled guilty to federal conspiracy to commit bank fraud and was sentenced to 18 months incarceration. When she subsequently submitted her claim for benefits under the plan, Gateway denied it, and she filed suit. The court determined in 2022 that despite Metaxas’ criminal conduct, “the administrative denial of Metaxas’s claim was inadequately supported by evidence in the record and thus an abuse of discretion.” The court remanded to Gateway for a further determination as to whether Metaxas was entitled to benefits. Gateway approved benefits on remand, but Metaxas was unhappy with the way Gateway handled her claim and thus the court granted her request to reopen the case in 2024. Metaxas alleged numerous claims in her new complaint, but after two motions to dismiss, she was left with a single claim regarding how her benefits were calculated. The parties filed cross-motions for summary judgment which the court ruled on in this order. As the court put it, “At this juncture, the parties no longer dispute that Metaxas is eligible for termination benefits. The dispute here solely concerns the amount of the monthly benefit and, in particular, the meaning and application of the SERP’s calculation of ‘salary rate’ and ‘salary allowance.’” These terms were important because under the SERP, Metaxas’ termination benefit required calculating her “salary allowance,” which involved multiplying her “salary rate” by a fraction that varied depending on her years of service. The court employed the abuse of discretion standard of review, but tempered that review with “some skepticism” given Gateway’s structural conflict of interest. The court ultimately agreed with Gateway. The court concluded that Gateway’s determination was not an abuse of discretion because its interpretation of “salary rate” was grounded in the SERP’s plain language, compensation records, and Gateway’s payroll and tax documentation. These documents did not support Metaxas’ competing interpretation, which involved treating a bank-owned life insurance policy (BOLI) as deferred salary, and thus as part of her “salary rate.” “Instead, the record unequivocally establishes that the BOLI was a Gateway-owned and controlled asset… And the SERP makes clear that Metaxas had no entitlement to the policy… Under these circumstances, she cannot reasonably assert that the premiums paid to the policy constituted deferred salary.” Metaxas offered a competing calculation using “reverse engineering” from Gateway’s accounting records, but the court found this “methodology unpersuasive,” “flawed,” and “makes no sense.” Thus, the court granted Gateway’s motion for summary judgment and denied Metaxas’.

Plan Status

First Circuit

Lucchesi v. Guaranty Fund Mgmt. Servs. Health & Welfare Plan, No. 25-CV-10773-AK, 2026 WL 679526 (D. Mass. Mar. 11, 2026) (Judge Angel Kelley). James Lucchesi worked for Guaranty Fund Management Services (GFMS) for seventeen years, holding various positions. In 2019, Lucchesi experienced worsening anxiety and was diagnosed with acute situational stress disorder, situational anxiety, and mild depression by his doctor, who recommended an eight-week leave from work. Lucchesi applied for benefits under GFMS’ Short-Term Disability Plan (STDP), but “GFMS denied the claim without explanation… Lucchesi then took unpaid leave, and upon returning, retired early.” Lucchesi filed suit against GFMS and its Health and Welfare Plan, asserting four claims: (1) short-term disability benefits under ERISA, (2) equitable relief under ERISA, (3) short-term disability benefits under state law, and (4) equitable relief under state law. Defendants filed a motion to dismiss, contending that (1) the court lacked subject matter jurisdiction over the first two clams because the STDP was a payroll practice, and thus not governed by ERISA, and (2) the court should not hear the second two claims under its supplemental jurisdiction. The court explained, “Plans are payroll practices – not subject to ERISA – where they: (1) administer benefits ‘on account of periods of time during which the employee is physically or mentally unable to perform his or her duties, or is otherwise absent for medical reasons (such as pregnancy, a physical examination or psychiatric treatment),’ (2) provide payment as normal employee compensation, and (3) are self-funded from the employer’s general assets.” Lucchesi did not dispute that the first two criteria were met, so the court turned to the third. Defendants relied on the plan, which stated that it was “self-insured by GFMS” and “the benefits provided hereunder will be paid solely from the general assets of GFMS.” A GFMS employee also testified in an affidavit that GFMS “directly pa[ys] all short-term disability benefits” “from GFMS’[ ] assets.” Lucchesi argued that the plan documents alternately referred to the plan as “self-insured” and “self-funded,” thus creating an ambiguity, but the court described this as “irrelevant,” a distinction without a difference. Lucchesi also argued that the plan indicated that it intended to be governed by ERISA. However, “such intent is non-dispositive where the plan otherwise functions as a payroll practice…where all three prongs of the payroll practice exception are met, the plan is not ERISA-governed, even if it claims to be.” Finally, Lucchesi argued that it was unclear whether the plan was funded by general assets because it stated that GFMS was not required to create a segregated fund for STDP benefits. The court responded that this language, “if anything, appears to emphasize that the STDP benefits are paid from the employer’s general funds. Moreover, the existence of a separate fund is insufficient evidence on its own anyways.” In short, it was clear to the court that the STDP met all three elements of a payroll practice and was thus exempt from ERISA. The court granted defendants’ motion to dismiss and declined to exercise jurisdiction over Lucchesi’s state law claims, dismissing them without prejudice.

Sixth Circuit

Clem v. Ovare Grp., Inc., No. 3:25-CV-00614-GNS, 2026 WL 734667 (W.D. Ky. Mar. 16, 2026) (Judge Greg N. Stivers). Toni Clem held several executive positions at Ovare Group, Inc., including president, chief operating officer, and chief revenue officer. In 2009, Clem and Ovare entered into a long-term incentive plan (LTIP) that granted Clem stock appreciation rights (SARs). Clem exercised some of her SARs before resigning in 2021, and the remaining SARs were deemed exercised 90 days after her resignation. However, Clem contends that she has not received payment for them, despite her inquiries. She alleges that Ovare repeatedly told her that it had not “made Ceiling,” i.e., the company did not earn enough to fund the SARs. Clem thus brought this action, asserting breach of contract and, alternatively, claims for declaratory judgment, unjust enrichment, and violation of ERISA. Ovare moved to dismiss for failure to state a claim, contending that ERISA preempted Clem’s claims and that she conceded that she could not bring an unjust enrichment claim. Addressing ERISA first, Ovare argued that the LTIP was a “top hat” plan governed by ERISA and thus Clem’s state law claims were preempted. Ovare also argued that Clem’s ERISA claim was unviable because she failed to exhaust her administrative remedies. Clem responded that the plan was a “bonus plan outside of ERISA.” The court ruled that “it is not clear from the materials submitted that the LTIP is a top hat plan rather than a bonus plan.” The allegations did not establish who was covered by the plan, how many people were covered by the plan, and whether they were highly compensated, all of which were factors in determining whether the LTIP was a top hat plan. As a result, the court ruled that “‘it is not appropriate to make a determination of the nature of the [LTIP] before the facts are developed and properly before the Court for consideration.’… It is therefore also inappropriate to determine whether Clem’s state law claims are preempted or Clem failed to exhaust her administrative remedies.” Ovare’s motion on this issue was therefore denied. As for Clem’s unjust enrichment claim, the court agreed that she did not respond to Ovare’s argument on this issue and thus granted its motion to dismiss the claim, without prejudice.

Provider Claims

Second Circuit

The Central Orthopedic Grp., LLP v. Aetna Life Ins. Co., No. 24-CV-3144 (BMC), 2026 WL 673306 (E.D.N.Y. Mar. 10, 2026) (Judge Brian M. Cogan). Plaintiff The Central Orthopedic Group, LLP performed out-of-network surgeries on a patient who executed a document allowing defendant Aetna Life Insurance Company, his insurance provider, to pay the healthcare provider directly. Plaintiff charged $325,400 for the surgeries, but Aetna paid only $1,844. Plaintiff sent two letters to Aetna’s appeals department demanding that the entire claim be “re-reviewed and reprocessed.” Aetna acknowledged the appeal but stated that “it lacked ‘key elements necessary to accurately classify, research and resolve [the] issue.’ Defendant’s letter informed plaintiff that, absent any response within ‘30 days…the original adverse determination will be considered final.’” Plaintiff did not respond and Aetna upheld its decision. This action followed, in which plaintiff sought payment of plan benefits under ERISA. Aetna moved for summary judgment on the grounds that plaintiff lacked standing and failed to exhaust administrative remedies. Addressing standing first, the court noted that healthcare providers are not “participants” or “beneficiaries” under ERISA and cannot sue unless they have been properly assigned the rights of a patient. Aetna asserted that no assignment was allowed, pointing to plan language stating, “When you assign your benefits to your out-of-network provider, we will pay them directly. A direction to pay a provider is not an assignment of any legal rights.” However, the court found this language ambiguous: “Obviously, a patient cannot ‘assign’ his right to receive ‘health services,’ so the ‘assignment of benefits’ provision must refer to the ‘[defendant’s] obligation to pay.’ And that necessarily includes ‘the associated right to sue for non-payment.’… In other words, the terms ‘benefit’ and ‘legal right,’ as used in the plan, both refer to the ‘right to sue for non-payment.’ It is irreconcilable that a direction to pay simultaneously constitutes an assignment of that ‘benefit’ but not an assignment of that ‘legal right.’ Thus, the provision is ambiguous.” Because the provision was ambiguous, the court construed it against Aetna, the drafter of the provision, and thus ruled that plaintiff had standing to sue. The court ruled against Aetna on its exhaustion argument as well. The plan required an appeal to be initiated by seeking written or telephonic review of an adverse benefits determination, and the court found that plaintiff’s letters satisfied this requirement. Aetna contended that the appeal was never properly initiated because plaintiff did not respond to Aetna’s request for information, but the court noted that Aetna’s letter also stated that the original adverse determination would be considered final if the information was not received. “So, by defendant’s own word, ‘the plan issue[d] a final denial.’… Plaintiff therefore did its part in seeking ‘re-review of [the] adverse benefits determination.’ Accordingly, plaintiff exhausted its administrative remedy.” Thus, the court denied Aetna’s motion for summary judgment.

Third Circuit

Genesis Laboratory Mgmt. LLC v. United Healthcare Servs., Inc.,  No. 21CV12057 (EP) (JSA), 2026 WL 709863 (D.N.J. Mar. 13, 2026) (Judge Evelyn Padin). The plaintiff in this case is Genesis Laboratory Management LLC, which provided COVID-19 testing services during the pandemic. Metropolitan Healthcare Billing, LLC, provided billing services for Genesis. (Both have the same physician owner.) Genesis brought this action claiming that defendants United Healthcare Servs., Inc. and Oxford Health Insurance, Inc. underpaid for those services. Defendants responded with counterclaims alleging that Genesis and Metropolitan (1) overcharged them, (2) billed for duplicative tests, and (3) billed for ancillary unnecessary expensive tests. Defendants contended that while federal law (the CARES Act) required testing facilities to publicly post their cash price for COVID-19 tests, and insurers were required to reimburse these facilities at the posted rate, Genesis charged self-paying members $100 for COVID-19 tests but publicly posted and charged defendants a rate of $513. Defendants asserted ten counts in all, including recoupment of overpayments under ERISA and non-ERISA plans, violation of the New Jersey Insurance Fraud Prevention Act, common law fraud, fraudulent misrepresentation, fraudulent concealment, negligent misrepresentation, unjust enrichment, civil conspiracy, and declaratory judgment. Genesis and Metropolitan filed a motion to dismiss these counterclaims, which the court granted in part and denied in part. Addressing the “cash price allegations” first, the court dismissed defendants’ state law and common law claims based on these allegations, finding them preempted by ERISA, as amended by the CARES Act. However, it allowed defendants’ claim for equitable relief under ERISA, 29 U.S.C. § 1132(a)(3)(B), to proceed. Genesis and Metropolitan contended that this claim sought impermissible legal damages, not equitable relief, but the court agreed with defendants that their claim was viable because they alleged that they “seek relief based on an equitable lien that exists ‘in accordance with the ERISA plan provisions governing recoupment of overpayments.’” These allegations were only viable against Genesis, however, not Metropolitan. As for defendants’ remaining claims, which were based on “duplicative billing allegations” and “ancillary testing allegations,” the court dismissed these due to defendants’ failure to meet the particularity requirements of Federal Rule of Civil Procedure 9(b). The court found that defendants’ allegations lacked specificity regarding the fraudulent conduct and did not explain Metropolitan’s role in the purported scheme. As a result, defendants’ only remaining counterclaims are count one, “against Genesis for overpayments under ERISA plans based on the Cash Price Allegations,” and count ten, which is derivative of count one and seeks “declaratory judgment to prevent Genesis from recovering for unpaid reimbursements pursuant to ERISA plans based on the COVID-19 test price.”

Redstone v. Aetna, Inc., No. 21-19434 (JXN)(JBC), 2026 WL 705539 (D.N.J. Mar. 12, 2026) (Judge Julien Xavier Neals). Jeremiah Redstone, M.D., and Wayne Lee, M.D., are plastic surgeons who are not in Aetna’s provider network but have contracts with Multiplan, which in turn has a contract with Aetna. Redstone and Lee performed breast reconstruction surgery on two patients and allege that they received prior authorization for those procedures. The two doctors billed $226,630 and $102,000 for the surgeries but were only paid $20,149.23 and $5,559.37 respectively, which they contend is far less than the negotiated percentage of billed charges at which they should have been paid (85% for Redstone and 75% for Lee). Aetna denied their appeals and this putative class action ensued. Plaintiffs sought monetary relief under ERISA § 502(a)(1)(B), injunctive relief under § 502(a)(3)(A), and equitable relief under § 502(a)(3)(B). Last March the court determined that plaintiffs had standing to bring their claims and had sued the proper defendants, but granted defendants’ motion to dismiss because plaintiffs failed to identify specific plan provisions entitling them to benefits for the surgeries. Plaintiffs amended their complaint, defendants moved to dismiss again, and in this order the court denied their motion. The court found that the plaintiffs adequately alleged a legal entitlement to benefits based on mandatory language in the plan summaries, which stated that a pre-negotiated charge “will be paid” if services are received from a contracted provider. The court thus concluded that the amended complaint sufficiently alleged that Aetna approved the surgeries for coverage, that plaintiffs had a contractual relationship with Aetna, that the plans required payment at contracted rates, and that Aetna failed to pay these rates. As for plaintiffs’ claims under § 502(a)(3), because the § 502(a)(1) claim survived, the § 502(a)(3) claims also survived. Thus, the case will continue with all claims intact.

Sixth Circuit

DaVita Inc. v. Marietta Mem’l Hosp. Employee Health Benefit Plan, No. 2:18-CV-1739, 2026 WL 668321 (S.D. Ohio Mar. 10, 2026) (Judge Sarah D. Morrison). This case, which has gone up to the Supreme Court and back, has been around since 2018. Initially, plaintiff DaVita Inc., the kidney dialysis giant, asserted claims for violation of the Medicare Secondary Payer Act (MSPA), benefits under ERISA Section 502(a)(1)(B), several breach of fiduciary duty claims under ERISA, a co-fiduciary liability claim, a claim for knowing participation in a fiduciary breach, and a claim for violation of 29 U.S.C. § 1182(a)(1), all based on alleged discrimination against plan participants and beneficiaries with end-stage renal disease (ESRD). The district court granted defendants’ motion to dismiss in 2019 and DaVita appealed. The Sixth Circuit reversed in part and remanded to the district court for further proceedings on the ERISA benefits claim, the Section 1182 claim, and the MSPA claim. Defendants then filed a petition for writ of certiorari with the Supreme Court. The Supreme Court granted certiorari, heard the case, and ruled for defendants, holding that there was no disparate-impact liability under the MSPA, and that the plan’s outpatient dialysis provisions did not violate the MSPA’s non-discriminatory provisions because its terms applied uniformly to all covered individuals. The Supreme Court remanded to the Sixth Circuit, which remanded to the district court, which pared DaVita’s claims further on a motion for judgment on the pleadings. Now, defendants have moved for summary judgment on the two remaining claims – an anti-discrimination claim under ERISA Section 702, and a derivative claim for benefits under ERISA Section 502. In opposing, DaVita contended that the plan violated Section 702 and “discriminated against its enrollees suffering from ESRD by eliminating network coverage for enrollees with ESRD and, by extension, by exposing enrollees to higher costs[.]” The court stressed that Section 702 was a “disparate treatment” anti-discrimination statute, not a “disparate impact” statute, and thus “discriminatory intent is an essential element of a claim under ERISA § 702.” The court examined DaVita’s evidence on the issue of discriminatory intent and found it lacking. The court ruled (a) there was no evidence that Marietta considered costs associated with ESRD when implementing the plan terms, (b) an inquiry by Marietta’s HR director into where employees were receiving dialysis did not mention ESRD, and occurred before the plan was adopted, thus making it “too tenuous” to support DaVita’s claims, (c) agenda items on meetings between Marietta and its third party administrator mentioned repricing of dialysis treatment, but “the suggestion that ESRD was part of the discussion is wholly speculative,” and (d) while DaVita presented evidence highlighting the disparate impact of the plan terms on ESRD patients, this was insufficient on its own because, as above, Section 702 requires proof of discriminatory intent. In sum, “DaVita’s evidence fails to establish that Marietta adopted unique benefits terms for outpatient dialysis services because of their adverse effects on Plan participants with ESRD. DaVita thus lacks evidence to support an essential element of its ERISA § 702 claim: discriminatory motive. Accordingly, no reasonable jury could return a verdict for DaVita on Count III.” Count II, for plan benefits, went down in flames as well because it was wholly dependent on Count III. Defendants’ summary judgment motion was thus granted and the case was terminated. DaVita must now decide whether the case is worth another trip to the Sixth Circuit.

Retaliation Claims

Fourth Circuit

Harris v. Virginia Commonwealth Univ. Health System Authority, Civ. No. 3:25-cv-644, 2026 WL 674192 (E.D. Va. Mar. 10, 2026) (Judge John A. Gibney, Jr.). Naliah Harris was a nurse at a children’s hospital operated by Virginia Commonwealth University Health System Authority (VCUHS). She contends that she observed racial discrimination against African-American nurses like herself, including demotions and failures to promote. She further alleges that when she reported this she suffered from increased scrutiny and criticism at work, and her requests for mental health accommodations were partially denied. She also alleges that her supervisor gave her drink coasters “with undesirable messages.” Harris was eventually terminated after refusing to sign a settlement agreement under threat of termination. Harris filed this pro se action alleging numerous claims under several federal statutes, including Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 1981, the Age Discrimination in Employment Act (ADEA), the Americans with Disabilities Act (ADA), state law, and Section 510 of ERISA. Defendants, which consisted of VCUHS and several of its employees, filed a motion to dismiss for failure to state a claim. The court explained that there are two kinds of claims under ERISA Section 510 – unlawful interference and retaliation – and it was unclear from the complaint which kind of claim Harris was bringing. However, it did not matter because “she fails under either.” The court ruled that Harris “does not state that anyone discriminated against her for exercising her rights under any ERISA-backed plan,” and “she has failed to adequately allege that anyone acted for the purpose of interfering with her benefits.” The court noted that Harris did not include “specific ‘factual allegations’ supporting the intent requirement,” and without these, “the intent element ‘is nothing more than [the plaintiff’s] subjective speculation.’” Thus, dismissal was appropriate. Harris’ other claims fared no better. The court ruled that Harris’ Title VII race discrimination and retaliation claims were time-barred, as well as her ADA claims, because they were filed after the 90-day deadline following the receipt of her right-to-sue letter from the EEOC. Harris’ Title VII sex discrimination and ADEA claims were dismissed for failure to exhaust administrative remedies, as these claims were not included in her EEOC charge. Harris’ claims under 42 U.S.C. § 1981 for racial discrimination, retaliation, and wrongful termination were dismissed because she “does not sufficiently allege the causation element of any of her § 1981 claims.” The court acknowledged that Harris was acting pro se and thus her claims must be liberally construed, but held that it could not “fill the gaps” in her factual allegations. Finally, the court declined to exercise supplemental jurisdiction over the remaining state law claims after dismissing all of Harris’ federal claims. As a result, Harris’ complaint was dismissed in its entirety.