Complex regulatory mandates, coupled with an aggressive plaintiffs’ bar, render ERISA and benefits-related litigation a “bet the company” concern for businesses nationwide. Despite an employer’s or plan administrator’s best efforts to comply with the law and mitigate risk, costly and time-consuming benefits litigation often ensues.

Class Action ERISA litigation has become a “bet-the-company” event. We are asked frequently why ERISA class action litigation is so prevalent today. The answer is simple: the amount of plan assets. Long ago people asked why famed bank-robber Willie Sutton robbed banks. The response: that’s where the money is. Private pension plans hold more than $10 trillion of assets, making plans an attractive target for the plaintiff’s bar. Additionally, the statutory environment for retirement and welfare plans incorporates complex regulatory provisions from the tax code and labor laws. Multiple government entities regulate plans, including the Department of Labor, the IRS, the Department of Treasury and the Pension Benefit Guaranty Corporation. Combine complex regulation, with claims impacting an entire workforce, plus the potential for draconian damages and the result is often “bet-the-company” class actions. 

Given this unpredictable environment with high damage exposures, businesses need experienced advisors who have a history of applying well-honed judgment to difficult and intractable benefits litigation problems.