Author: Bailey Glasser

Bailey Glasser partner Mark Boyko was quoted in the Law360 article, “3 Arguments, Hearing Benefits Attys Should Watch in Feb.,” commenting on the significance of a new theory of liability under ERISA against Clorox Co. in a California federal court. The case challenges the company’s use of 401(k) forfeitures, created when employees leave before fully vesting, to offset corporate contributions into the plan.

“The two main issues in the case involve the plaintiffs’ standing and industry practice of how to treat 401(k) plan forfeitures,” Mark said. “A decision for defendants on standing or for plaintiffs on the merits would have meaningful consequences that sweep beyond the case itself.” Read the full article here.

Mark is a pioneer in ERISA class action litigation and represents 401(k) plan participants alleging breach of fiduciary duties by their employers and has secured judgments and settlements in this area exceeding $500 million. Learn more about his experience here.

#ERISA #ClassActions #EmployeeBenefits #BaileyGlasser

Another win on behalf of protecting company employees’ hard-earned money: today, our ERISA team defeated a motion to dismiss that challenged a class action brought on behalf of a class of investors in the Churchill Holdings, Inc. Employee Stock Option Plan where we alleged that the trustees breached their fiduciary duties and engaged in prohibited transactions in violation of ERISA law.

The federal court in Arnold v. Parades (filed in the Middle District of Tennessee), rejected virtually every argument made by defendants. Judge Crenshaw held that the plaintiffs’ individual releases did not bar them from suing on behalf of their ESOP, that the plan’s class action waiver was unenforceable because it prevented effective vindication of statutory rights and violated ERISA’s anti-exculpatory provision, section 410, and that plaintiffs adequately alleged breaches of fiduciary duty and prohibited transactions. Plaintiffs are challenging the fair market value of the stock determination made by the trustee when it terminated the Churchill Holdings, Inc. ESOP.

The Bailey Glasser team includes partner and ERISA Practice Group Leader Greg Porter, partners Mark Boyko, Ryan Jenny, and Patrick Muench, and associate Laura Babiak. Our ERISA team is a leader in protecting ERISA and ESOP plans, and is ranked nationally by Chambers & Partners and Best Law Firms, with Greg Porter also being ranked Band One in ERISA Litigation, Mainly Plaintiffs – USA-Nationwide. For more about our ERISA work, please visit here.

To read the Court’s opinion, visit this link.