Reetz v. Lowe’s Companies, Inc., No. 5:18-CV-00075-KDB-DCK, 2021 WL 4771535 (W.D.N.C. Oct. 12, 2021) (Judge Kenneth D. Bell). 

This week’s notable decision is a surprising loss for participants in Lowe’s 401(k) pension plan against the plan’s investment manager, Aon Hewitt Investment Consulting, following class certification, success on summary judgment, and a multi-million-dollar, court-approved settlement with Lowe’s inside fiduciaries.   

Plaintiff Benjamin Reetz, a former Lowe’s employee and 401(k) plan participant, brought suit against Lowe’s, the administrative committee of the plan, and Aon, claiming numerous breaches of fiduciary duty with respect to Aon’s design and implementation of a new investment strategy and line-up for the plan. Following class certification, plaintiff’s claims against Lowe’s and the administrative committee were resolved through a class action settlement totaling $12.5 million. But the claims against Aon proceeded to a bench trial. Continue Reading Lowe’s 401(k) Participants Lose at Trial After Winning Every Battle

Hursh v. DST Systems, Inc., No. 4:21-mc-09017, 2021 WL 4526849 (W.D. Mo. Oct. 4, 2021) (Judge Nanette K. Laughrey).

It is no secret that employers like arbitration provisions, and ERISA case law generally allows them to include such provisions in their employee benefit plans. However, this case is an object lesson in being careful what you ask for – because you just might get it.

Continue Reading Be Careful What You Wish For: Employer Can’t Escape Hundreds of Arbitration Awards

Browe v. CTC Corp., Nos. 19-677-CV, 19-813-CV, __ F.4th __, 2021 WL 4449878 (2d Cir. Sept. 29, 2021) (Before Circuit Judges Livingston, Lynch, and Bianco).

If you ever need to show someone a case to demonstrate how messy ERISA can be, you may want to consider this one. In this decision, the Second Circuit tackled a full buffet of ERISA issues, including statutes of limitations, “top hat” plan status, liability among fiduciaries, statutory penalties, and how to calculate and apportion remedies.

The trouble began when CTC Corporation, a Vermont photo-finishing company, decided to offer its employees a deferred compensation benefit plan in 1990. When the rise of digital photography obsoleted traditional film development, the company crumbled and so did the plan. CTC began using plan assets to fund the business in 2004, and eventually it was forced to cease doing business in 2014. This lawsuit, brought by several CTC employees against CTC and its managers, followed. The district court largely ruled for plaintiffs, but neither side was happy, and both appealed. Continue Reading Pension Plan Participants Largely Prevail in a Kitchen Sink Appeal to the Second Circuit