Good morning, ERISA Watchers! It’s been a beautiful sunny weekend here in San Francisco. Unfortunately, it hasn’t been so sunny for participants investing in SunEdison stock. This week’s notable decision is Usenko v. MEMC LLC, No. 18-1626, __F.3d__, 2019 WL 2344827 (8th Cir. June 4, 2019), where the Eighth Circuit affirmed the district court’s dismissal of this putative class action alleging that Defendants breached their duty of prudence with respect to keeping SunEdison stock in the defined-contribution retirement savings plan. Plaintiffs alleged that Defendants knew, or should have known, that between July 20, 2015 and April 21, 2016 that SunEdison was in poor financial condition and they should have removed SunEdison stock from the plan’s assets. Continue Reading Second and Eighth Circuits Affirm Dismissal of Imprudent Investment Lawsuits Involving SunEdison Stock
Court Finds Administrator’s Conflict of Interest and Procedural Irregularities Warrant De Novo Review
Good morning, ERISA Watchers! Piggybacking on last week’s notable decision discussion, this week’s notable decision is McIntyre v. Reliance Standard Life Insurance Company, No. CV 17-5134 (JRT/DTS), 2019 WL 2267054 (D. Minn. May 28, 2019), a case analyzing an insurer’s history of biased claims administration when it comes to determining the conflict of interest and standard of review.
At issue in McIntyre is whether the plaintiff, a nurse disabled by Charcot Marie Tooth Syndrome (“CMT”), is entitled to long-term disability benefits under the “Any Occupation” standard in the Reliance Standard disability policy. (CMT is a neurological disorder that affects peripheral nerves.) If you’re in a hurry for the happy ending, the court’s answer is YES. Let’s examine how the court got there. Continue Reading Court Finds Administrator’s Conflict of Interest and Procedural Irregularities Warrant De Novo Review
Fifth Circuit Reverses Long-Term Disability Victory of Sanitarian Worker
Hello, ERISA Watchers! On this Memorial Day weekend, let’s take a moment to commemorate the men and women who made the ultimate sacrifice for their country and to reflect on the luxuries and freedoms that we enjoy today as a result.
Moving on from the solemnity, this week’s notable decision is an icy one for plan participants. In Nichols v. Reliance Standard Life Insurance Company, No. 18-60499, __F.3d__, 2019 WL 2223614 (5th Cir. May 23, 2019), the Fifth Circuit reversed a district court decision that I happily reported on July 8, 2018 (Your ERISA Watch – Court Examines Two Decades of Reliance Standard Life Insurance Company’s Abuse of Discretion in Disability Benefit Claims). Continue Reading Fifth Circuit Reverses Long-Term Disability Victory of Sanitarian Worker