Bailey Glasser’s 2024 Year in Review

2024 marked a milestone for Bailey & Glasser, LLP as we celebrated 25 years since our founding on March 1, 1999. As founding partner Brian Glasser said back then, “I can’t tell you how great it is to come to work just plain excited.” For over 25 years, that passion has driven our dedication to practicing law while making a meaningful impact on our clients and communities—work that remains at the core of BG today.

This “2024 Year In Review” highlights our accomplishments from the past year, including work for our valued clients, introductions to new partners and lawyers, celebrations like our 25th anniversary celebration at our Washington, D.C. office, nationwide recognitions, and a flashback to 1999 from the BG Archives. Notable victories highlighted include a $40 million jury verdict in a Texas corporate fraud case, compassionate advocacy for abuse survivors and consumers injured by defective products, precedent-setting ERISA rulings on behalf of retirees in courts nationwide, a special section highlighting our litigation and corporate work in the energy industry, and over $1 billion in closed deals for the West Virginia Investment Management Board, and so much more.

Thank you for taking a few moments to explore this report—we hope you enjoy it. Follow this link to view the full report.

#BaileyGlasser #2024inReview #25thAnniversary #TrialLawyers #CorporateLawyers #ERISA #MassTorts #EnergyIndustry #Litigators #ClassActions #MassTorts #ProductLiability #Community

BG’s ERISA Team Files for Court Approval of $14 Million Settlement with RVNB Holdings

On January 9, 2025, Bailey Glasser’s ERISA team filed an unopposed motion for preliminary approval of settlement and certification of settlement class on behalf of participants in the RVNB Holdings, Inc. Employee Stock Ownership Plan (ESOP), in a case proceeding in the U.S. District Court for the Northern District of Texas.

The parties have agreed to resolve all matters in controversy, including the action and a separate but related Department of Labor (DOL) enforcement case, with a total settlement of $14 million. This amount includes a statutory penalty to the DOL, with $12.75 million allocated to the class of ESOP participants.

The settlement, if approved by the court, will end more than five years of litigation concerning the sale of RVNB by the ESOP in 2017, which the plaintiffs alleged was for less than fair market value and caused by defendant fiduciaries in violation of the federal ERISA retirement benefits statute. The case is Coleman, et al. v. Brozen, et al., Case No. 3:20-CV-01358, and is proceeding before U.S. District Judge Ada Brown.

Members of the BG team include ERISA Practice Group leader Gregory Porter, Ryan T. Jenny, Patrick Muench, and co-counsel from Ajamie LLP.

To learn more about our nationally recognized ERISA, Employee Benefits & Trust practice, visit here: https://ow.ly/nv4Y50UIEsC

#ERISA #ESOP #ERISALitigation #BaileyGlasser

ERISA Partner Gregory Porter to Speak on Federalist Society Panel

This Thursday, Bailey Glasser’s ERISA Practice Group Leader, Gregory Porter, will join the Federalist Society’s “A Seat at the Sitting” panel discussion to preview the Supreme Court of the United States’ upcoming January docket.

One case set for argument on January 22, 2025, is Cunningham v. Cornell, which focuses on a key issue in ERISA litigation: whether a plaintiff can state a claim simply by alleging that a plan fiduciary engaged in prohibited transactions with a party in interest, or whether they must plead and prove additional facts not expressly required by federal law. The outcome could significantly impact how ERISA claims are litigated, particularly those involving retirement plan fees and fiduciary duties.

Greg brings extensive trial and class action experience in complex pension, 401(k), and ESOP lawsuits, having recovered hundreds of millions of dollars on behalf of employees who lost retirement savings due to fiduciary mismanagement. His insights on the potential implications of this case for retirement plans nationwide are invaluable. To learn more about Greg, visit here.

For more information and to register for the webinar, visit here.

#ERISALitigation #SupremeCourt #CunninghamvCornell #BaileyGlasser #FederalistSociety

Partner Mark Boyko Quoted in Bloomberg Law About Federal Court Appellate Ruling

BG ERISA litigator Mark Boyko is quoted in a Bloomberg Law article (“Parker-Hannifin Suit Revival Hints at Lower 401(k) Challenge Bar”) related to a recent worker-friendly appellate decision by the U.S. Court of Appeals for the Sixth Circuit.

The decision (note: Bailey Glasser is not counsel in this case) requires Parker-Hannifin, a Cleveland-based company, to defend claims that it mismanaged its 32,000-person 401(k) plan when it retained unproven and underperforming target date funds from Northern Trust. The U.S. Court of Appeals for the Sixth Circuit found in a 2-1 split decision that Parker-Hannifin workers have viable ERISA claims because they plausibly alleged that the Northern Trust Focus Funds had high investor turnover and underperformed a target date fund index from S&P Global.

The decision marks the latest word on the “meaningful benchmark” standard that several courts, including the Sixth, Seventh, Eighth, and Tenth circuits, have used to assess whether retirement investors have identified a better alternative that’s sufficiently similar to the fund or fee structure they challenge.

In the Bloomberg article, Mr. Boyko states that an overly restrictive interpretation of the “meaningful benchmark” standard creates “huge obstacles for workers challenging actively managed funds or target date funds with distinct characteristics.”

To read the full article (subscription necessary) click this link.

To learn more about Mr. Boyko’s practice where he protects workers’ and retirees’ hard-earned money, please visit his firm bio here.

To learn more about BG’s nationally-ranked ERISA practice, please visit our ERISA Practice Group webpage.

Partner Mark Boyko Wins Seat in Missouri House of Representatives

Congratulations to Bailey Glasser partner and ERISA litigator Mark G. Boyko on his election to the Missouri House of Representatives for District 90. Running on a campaign supporting healthcare, public education, jobs, and protecting the environment, Mark boldly departed from traditional political campaigning by reallocating campaign funds to benefit local nonprofits rather than subjecting voters to junk mail or robocalls.

Mark is a generous and compassionate public servant (as well as a father of two and busy lawyer): he is a member of the Kirkwood School Board and also serves on the board of the St. Louis Area Diaper Bank and the Friends of the Kathy J. Weinman Center, St. Louis County’s safe haven for victims of domestic abuse.

Upon winning his election, Mr. Boyko commented: “I appreciate everyone who voted, volunteered, or put their name on a ballot, regardless of party, for continuing to believe our common good is worth their investment. I am confident in Missouri’s bright future and look forward to working toward it.”

Mark’s practice at Bailey Glasser focuses on finding hidden and excessive fees charged by Wall Street firms to 401(k) plan participants and protecting Employee Stock Ownership Plans (ESOPs). Since 2007, his cases have returned over $500 million to hard-working workers and retirees, and his work has helped 401(k) and 403(b) fees to drop $10 billion per year, helping all workers meet their retirement goals.

To learn more about Mark, please visit his firm bio here.

To learn more about our nationally recognized ERISA practice, please visit our ERISA, Employee Benefits and Trusts Litigation Practice page.

BG ERISA Team Protects Retirees From Boilerplate Arbitration Demand

Bailey Glasser’s ERISA litigation team scored a victory for retirement plan savers Monday, when U.S. District Court Judge Steven Grimberg rejected efforts by fiduciaries to The North Highland Company Employee Stock Ownership (ESOP) and 401(k) Plan to require its former employees to arbitrate claims related to the company ESOP.

The case hinged on the “effective vindication doctrine”, the idea that the Plan’s arbitration provision barred Plan-wide relief and, therefore, is unenforceable because it takes away rights and remedies available under the governing federal law, the Employee Retirement Income Security Act (ERISA). Plaintiffs allege improper dilution of the ESOP’s ownership interest in North Highland in order to give increasing ownership to certain North Highland executives and the subsequent undervaluing of the ESOP’s stock in a 2021 transaction in which the ESOP’s diluted shares were sold.

Plaintiffs are represented by Greg Porter, head of Bailey Glasser’s ERISA group, as well as Bailey Glasser attorneys Mark Boyko, Ryan Jenny, and Laura Babiak.

Read more …

Bailey Glasser Defeats Motion to Dismiss in $100 Million ERISA Action

Our ERISA team scored a victory for retirement plan savers Friday, when U.S. District Court Judge Robert Chatigny overwhelmingly rejected defendants’ motions to dismiss claims against fiduciaries to the Frontier Communications 401(k) Savings Plan.

Our lawsuit alleges that the fiduciaries running the Plan imprudently invested a large portion of the retirees’ 401(k) assets in Verizon Communications stock. The case alleges that by placing a large percentage of the Plan in a single security, the fiduciaries violated their obligations under ERISA to be prudent and diversify the assets of the Plan to avoid large losses. The Plan’s public filings show that the Plan had approximately $350 million invested in Verizon stock, and Plaintiffs’ 2018 complaint alleges that the volatility and poor performance of the stock cost the Plan more than $100 million.

The plaintiffs are represented by Gregory Porter, head of Bailey Glasser’s ERISA group, Mark Boyko, a partner in that group, and Robert Izard of Izard, Kindall & Raabe.

“Since the Complaint was filed, Verizon stock has continued to underperform diversified alternatives, meaning the actual damages are now significantly higher” noted Boyko. “We look forward to addressing this case on the merits.”

The case is Reidt v. Frontier Communications Corp., No. 18-cv-1538 and is pending in the U.S. District Court for the District of Connecticut.

To learn more about how our nationally-ranked ERISA litigation group helps protect retirement and ESOP funds, visit: https://ow.ly/LMr650TtqIA

For more about Practice Group Leader Greg Porter, please visit here.
For more about partner Mark Boyko, please visit here.

#ERISAlitigation #ERISA #classaction #BaileyGlasser

Federal Appeals Court Reinforces Protection for Worker Class Action Rights in ESOP Action

Bailey Glasser’s ERISA litigation team won another victory before the U.S. Court of Appeals for the Second Circuit, which declined to reconsider a May 2024 ruling that an employee stock ownership plan trustee and selling shareholders in a stock sale to the plan can’t compel individual arbitration of a representative action on behalf of the plan accusing them of overcharging the plan, rejecting the trustee’s argument that the panel unfairly displayed “hostility to arbitration.”

Bailey Glasser’s ERISA litigation team won another victory before the U.S. Court of Appeals for the Second Circuit, which declined to reconsider a May 2024 ruling that an employee stock ownership plan trustee and selling shareholders in a stock sale to the plan can’t compel individual arbitration of a representative action on behalf of the plan accusing them of overcharging the plan, rejecting the trustee’s argument that the panel unfairly displayed “hostility to arbitration.”

In an order filed on July 9, the Second Circuit rejected Argent Trust Co.’s petition for panel rehearing or rehearing en banc, doubling down on its divided May 1 opinion that found allowing arbitration would have prevented a plan participant from seeking plan-wide remedies authorized by federal benefits law.

The case involves a proposed class of employees seeking relief under federal ERISA law. This decision addressed one of the most important issues in employee benefits litigation today: whether ERISA plan sponsors can force employees to waive plan-wide relief in favor of individualized arbitration, thereby gutting participants’ ability to enforce the core private right of action ERISA affords. This repeated victory for participant rights follows a victory by BG’s ERISA litigation team on the same issue before the Third Circuit in June 2023.

The Court’s May 2024 opinion backed the Southern District of New York’s November 2021 order denying a motion to compel arbitration of an ESOP participant’s suit alleging mismanagement by Argent, which served as trustee to debt relief company Strategic Financial Solutions’ ESOP, and the selling shareholders and their trusts.

The Bailey Glasser team in this matter is comprised of partner and Practice Group Leader Gregory Porter and partner Ryan Jenny, both in Bailey Glasser’s Washington, D.C. office. Co-counsel in this case is Tillman J. Breckenridge, Peter K. Stris, Rachana A. Pathak, and John Stokes of Stris & Maher LLP.

To learn more about our award-winning ERISA practice – including our 2025 nationwide Chambers & Partners ranking, visit this link: https://www.baileyglasser.com/services-erisa-employee-benefits-and-trust-litigation

The case is Dejesus Cedeno v. Argent Trust Co., docket number 21-2891, U.S. Court of Appeals for the Second Circuit.

For more, read this Law 360 article: https://www.law360.com/articles/1856532?e_id=e710f5b1-e0ec-4910-bc7f-0d1e404a2625&utm_source=engagement-alerts&utm_medium=email&utm_campaign=similar_articles?copied=1

Bailey Glasser Defeats Motion to Dismiss in Schwab Managed 401(k) Action

BG secured an important win for employee participants of the Vituity and MedAmerica 401(k) retirement plan. On Friday, U.S. District Court Judge Richard Seeborg of the Northern District of California ruled on a motion to dismiss filed by CEP America and the MedAmerica Retirement & Benefits Committee, which oversees the 401(k) plan offered to employees and retirees of Vituity and MedAmerica. In his ruling denying the motion in part, Judge Seeborg noted that the Complaint alleges that the fees charged by recordkeepers to other 401(k) plans “were multiples less than those charged” by Schwab.

The employees, represented by Greg Porter, BG’s ERISA Practice Group Leader, and ERISA partner Mark Boyko, allege that the Defendants violated ERISA laws by allowing millions of dollars of their retirement savings to go to Schwab’s recordkeeping arm and to MedAmerica. The Plaintiffs also alleged that Schwab’s excessive compensation included Schwab receiving benefits from the 401(k) Plan’s use of Schwab’s bank savings account.

“Employers need to understand and accept their responsibility for prudently managing 401(k) plans free from conflicts of interest and self-dealing,” Boyko said. “We look forward to pursuing this matter on its merits.”

The case is Nagy, et al., v. CEP America, LLC, et al, No. 23-cv-5648, and is pending in the Northern District of California.

BG’s award-winning ERISA, Employee Benefits & Trust Litigation practice has been ranked by Chambers & Partners in the Nationwide ERISA Litigation: Mainly Plaintiffs category. Learn more about our ERISA services here.

Greg Porter, BG’s ERISA Practice Group Leader, has also received top rankings by Chambers in Nationwide ERISA Litigation: Mainly Plaintiffs (Band One). Learn more about his practice here.

And for more on ERISA partner Mark Boyko, visit here.

#ERISA #401k #Retirement

Federal Appeals Court Protects Worker Class Action Rights, Rejecting Demands for Individual Arbitrations

Bailey Glasser’s ERISA litigation team won a victory before the U.S. Court of Appeals for the Second Circuit on behalf of a proposed class of employees seeking relief under federal ERISA law.

The Second Circuit ruled May 1st that an employee stock ownership plan (ESOP) trustee and former shareholders of the ESOP’s wholly-owned financial services firm can’t compel individual arbitration of a proposed class action accusing them of overcharging the ESOP for company stock, saying that doing so would prevent a plan participant from seeking plan-wide remedies authorized by federal benefits law. In a 2-1 decision, the court ruled that the lower court was right to deny the motion to compel arbitration by Argent Trust Co., which served as trustee to Strategic Financial Solutions, LLC’s ESOP, and the former shareholders. Plaintiff and BG client, employee Ramon Dejesus Cedeno, filed the Employee Retirement Income Security Act (ERISA) suit in November 2020, alleging the defendants cost the retirement plan and its participants millions when they overcharged the ESOP in a $242 million sale of company stock.

The ruling comes more than a year after oral arguments in which a three-judge federal appeals panel questioned whether individual arbitration could be forced on Dejesus Cedeno given a plan participant’s right to seek relief on behalf of a plan as a whole under ERISA Sections 409(a) and 502(a)(2). The majority decision held that arbitration could not be so compelled, writing: “Because Cedeno’s avenue for relief under ERISA is to seek a plan-wide remedy, and the specific terms of the arbitration agreement seek to prevent Cedeno from doing so, the agreement is unenforceable.” This decision addressed one of the most important issues in employee benefits litigation today: Whether ERISA plan sponsors can force employees to waive plan-wide relief in favor of individualized arbitration, thereby gutting participants’ ability to enforce the core private right of action ERISA affords. This victory for participant rights follows a victory by BG’s ERISA litigation team on the same issue before the Third Circuit in June 2023.

The Bailey Glasser team in this matter is comprised of partner and Practice Group Leader Gregory Porter and partner Ryan Jenny, both in Bailey Glasser’s Washington, D.C. office. Co-counsel in this case is Tillman J. Breckenridge, Peter K. Stris, Rachana A. Pathak, and John Stokes of Stris & Maher LLP.

To learn more about Gregory Porter, visit this link.

To learn more about Ryan Jenny, visit this link.

To learn more about our award-winning ERISA practice, visit here.

To read a Law 360 article about this win, visit this link.

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